Breadth from the Twitter stream rose slightly last week as a result of an increase in the number of stocks in the bullish/strong list. However, the number of stocks in the bearish/weak list rose as well. This suggests that traders are finding more short opportunities and is a sign of weakness in the overall market.
Another sign that traders are pressing their shorts is the performance between a short of the S&P 500 index (SH) and an actively managed short fund (HDGE). Notice that HDGE is rising faster than SH. Add this to the list of warning signs I’ve mentioned over the past few months.
Breadth from the StockTwits community is rising. It comes from a slight increase in the strong stocks and a decrease in the number of weak stocks. Although this seems at odds with the Twitter stream it really isn’t. I only use the most active 100 symbols for the StockTwits list so they tend to be larger and more established companies. As a result, the rise in breadth from StockTwits could be a result of a flight to safety. Take a look at the symbols in the StockTwits bullish list and you’ll see the trend.