It has been almost two months since I mentioned the Investors Intelligence report, but certain developments caught my attention with the most recent report.
The first thing that caught my eye was the fact that the bullish percentage moved back above 50 percent. This is the first time the bullish percentage was above 50 since early May.
In early October, the bullish percentage was under 35 percent while the bearish percentage was at 46 percent and it has since fallen to 29.5 percent.
While the percentage increase in bulls is almost identical to the percentage declines in the bears, the bearish percentage is still substantially above its May reading.
When the bullish percentage was hitting 50 percent in May, the bearish percentage was below 20 percent, giving us a differential of bulls to bears of 2.5 to 1. The current ratio of bulls to bears is only 1.7 to 1.
Historically, the time to worry about the Investors Intelligence report is when the bullish percentage is three times the bearish percentage.
We have a way to go before reach that 3 to 1 ratio.
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