The Golden Bull/Bear Ratio

The two following charts may appear to have similiar general patterns and the first one covers roughly 6 times the span of the second.

Stocks since 1900

(30k feet)

Since 1996

(6k feet)

Source: JPMorgan

Similiar and the same in a hidden manner are the two bull market patterns shown above.

Let’s add to it …

Since 2009

(3k feet)

The Golden Bull/Bear Ratio

What is hidden in the above charts but what is common across all periods is that about 62% and 38% of the time:

  • There is a bull followed by a bear
  • Occuring in the same 62/38 ratio in both time and space

Here’s more on this ratio …

The one indicator that can identify a change in trend from bull to bear …

Elliot Wave Oscillator – Tutorial and Examples

By Terry Grennon

Asset Allocation Strategist