Exam 9: A Basic View of Technical Analysis and Market Efficiency

As the ratio of specialist short sales to total short sales increases,technicians consider the market to be

A low Barron's Confidence Index means that

A bar chart is used to demonstrate

According to the Dow theory,daily fluctuations and secondary movements in the market are used to help identify

The higher the mutual fund cash position

Mutual fund cash positions and trading by insiders are not generally reliable indicators of market health or activity.

Investment advisory recommendations are part of the smart money rules.

Under normal circumstances,the Barron's confidence Index is between 100 and 200.

Smart money rules or approaches to the market include

The Dow theory uses _________ to follow three major types of market movements.

Under the Dow theory,all of the following represent trends in the market except

Short selling by market specialists provides future demand potential to cover their short position.

High mutual fund cash positions would represent withdrawal from the market and thus a possible future market decline.

Technical analysis assumes that many chart patterns tend to repeat themselves.

A high ratio of specialist short sales compared to exchange short sales is interpreted as bearish.

Volume of short sales represents a contrary opinion rule because

Smart Money Rules include:

Contrary opinion rules or approaches to the market include the

Odd-lot traders have never outguessed professional traders.

Chartists do not consider volume significant in reading market indicators.