And when it gets really bad and they dry up for extended periods you get major corrections in individual sectors and the overall stock market. Those things flush out traders and set the stage for the next wave of Stage 2 breakouts to show up. Your goal as a trader is to avoid those flushes by remaining defensive.
Whenever the market starts to fail to produce new Stage 2 breakouts, it means 2 months from now there's going to be less leaders, which means you're not going to be in a great market.
So that's a key sign to get very cautious when the Stage 2 breakout activity grinds to a halt.
You need big new leaders to want to get involved in the stock market and they need to show you their power on the breakout.
If you don't see those leaders, you simply just wait for them to show up again, sometimes it takes weeks to months for that to happen.