Sentiment Trading Update From Investors Intelligence

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Investors Intelligence, who also offer clients spread betting and derivatives accounts has published its latest ‘Bull/Bear ratio’ – a tool designed to help traders understand market sentiment.

The new data from Investors Intelligence shows that the market in the US remains uncertain ahead of the Presidential Election in November.

How does the Investors Intelligence Bull/Bear Ratio work?

The Investors Intelligence Bull/Bear Ratio is a tool produced by the company – using information taken directly from market professionals.

The index reflects the sentiments of people who deal daily within the financial markets in order to determine whether it is more of a ‘bear’ or a ‘bull’ market.

High readings of the ration generally indicated a bearish sentiment in the market, while low readings suggest a bullish ones. Often, extremely high and low readings have correlated with market tops and bottoms.

Research provider & CFD broker publishes latest ratio

The Investors Intelligence data is often a reliable indicator of market sentiment – bullish when it is at 1 or lower and bearish when it is at 3 or higher.

The latest reading of the ratio shows that the market remains uncertain ahead of the Presidential election. The spread betting broker says that the reading is currently 2 indicating that sentiment is neither bullish nor bearish from a contrarian perspective.

The 2016 low was 0.63 during the first couple of weeks of February while it reached a high of 2.81 during the weeks of August 16 and 23.

Experts believe that the market will remain quiet until the outcome of the election. Investors seem to prefer Hillary Clinton although her economic plans include higher taxes and more regulation. Donald Trump is pledging significant tax cuts although some analysts are concerned about his anti-trade measures.

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