The Phillip Ratio

Example:

Below are 8 fictional stocks. If you run a scatterpgraph of Day 1 and the All Fall prices, you get the first chart in Blue with a ratio of y=0.7152x. When the market is falling, the value should go below 1.

The 2nd chart in Orange is between All Fall and All Rise. The ratio is y=1.232x. When the market rises, the value should go above 1.

Finally, the 3rd chart in Pink is when the share prices all stay the same. The ratio equation is y=x which is what you would expect because everything is the same.

The aim of this page is to record the ratio every month. 

One problem I can think of with this is that bigger share prices like 2000 will impact the ratio more than stocks like 20.

 Let's see if this ratio works.

Theory: 

In a Bull Run, ratio should be above 1, but when it falls below 1, maybe it's the time to sell and hold cash.

In a Bear Run, the ratio should be below 1, but when it rises above 1, maybe it's the time to buy.

The ratio between December 2025 and January 2026 was y=0.9983x with the FTSE 100 rising from 9931 to 10,223.

The ratio between November and December 2025 was y=1.0134x with the FTSE 100 rising from 9720 to 9931.

The ratio between October and November 2025 was y=1.0133x with the FTSE 100 rising from 9717 to 9720.

The ratio between October and November 2025 was y=1.1085x with the FTSE 100 rising from 9412 to 9717.

The ratio between September and October 2025 was y=1.0206x with the FTSE 100 rising from 9187 to 9412.

The ratio between August and September 2025 was y=0.989x with the FTSE 100 rising from 9068 to 9187.

The ratio between July and August 2025 was y=1.0299x with the FTSE 100 rising from 8785 to 9068.

The ratio between June and July 2025 was y=0.9887x with the FTSE 100 rising from 8774 to 8785.