Day Trading Online Home Page  

The Bull/Bear Ratio is a weekly vote by investment professionals, published by Investor's Intelligence magazine. The Bull/Bear Ratio shows what percentage of professionals are bullish versus what percentage are bearish, and as such is basically a distilled 'market sentiment' indicator. Generally, extreme optimism usually coincides with the very top of the market, while market bottoms are marked by extreme pessimism. Statistically, if the ratio is above 60% the outlook is bearish, while a ratio below 40% means the bulls are about to re-appear. Divide bullish votes by (bullish + bearish votes). Neutrals are discarded. As a add-on to your day trading system, we would remind you that telling the future is impossible, and even though the voters on the ratio are 'professional', that doesn't seem to mean much these days.

previous next