Keep in mind that there are two sides to every trade: The Bulls & The Bears. There are many reasons why the market performs one way or another, and here are some helpful tips to help you manage your trading in a Bull or Bear market.
Measure the Bearish Side – Short Interest
The bulls want the market to go higher and the bears want the market to go lower. Typically the bulls go “long” and the bears go “short” in order to express their view. The most common way of measuring the bearish side is to look at short interest. Short interest is the percentage of shares sold short vs the number of shares outstanding. For example, 2% short interest means that 2% of the outstanding shares are held short.