6.All of the following are bullish signals to a contrarian EXCEPT when the:

A)   Investment Advisor's Ratio is at 75%.

B)   OTC to NYSE Volume Ratio is at 75%.

C)   Mutual Fund Ratio is at 3%.

D)   Chicago Board Options Exchange (CBOE) Put/Call Ratio is at 0.90.

7.To determine whether smart investors are bullish, smart money technicians look for all of the following EXCEPT:

A)   the specialist short-sale ratio to fall below 30%.

B)   increases of debit balances in brokerage accounts.

C)   the rate of inflation to drop below 3%.

D)   the yield spreads between high and low quality bonds to narrow.

8.If only 16% of stocks are selling above their 200-day moving average, technical analysts would most likely:

A)   Buy stocks.

B)   Sell stocks.

C)   Buy T-bills.

D)   Sell foreign stocks.

9.An investor who views the Treasury-Eurodollar (TED) spread and the (Barron’s) confidence index as smart-money indicators would consider increases in these measures to be:

A)                                        Bullish   Bullish

B)                                        Bearish  Bullish

C)                                        Bullish   Bearish

D)                                        Bearish  Bearish

10.If the CBOE put/call ratio stands at 0.2, then the market:

A)   is bearish, and contrarians are bullish.

B)   and contrarians are bearish.

C)   and contrarians are bullish.

D)   is bullish, and contrarians are bearish.

答案和详解如下：

6.All of the following are bullish signals to a contrarian EXCEPT when the:

A)   Investment Advisor's Ratio is at 75%.

B)   OTC to NYSE Volume Ratio is at 75%.

C)   Mutual Fund Ratio is at 3%.

D)   Chicago Board Options Exchange (CBOE) Put/Call Ratio is at 0.90.

The correct answer was C)    

Ratio	If the indicator is:	Investors are:	Contrarians are:
MFR	< 5%	bullish	bearish
OTC/NYSE Volume*	< 87%	bearish	bullish
CBOE Put/Call	= or> 0.50	bearish	bullish
Investment Advisor	=> 60%	bearish	bullish

* OTC issues are considered more speculative.

7.To determine whether smart investors are bullish, smart money technicians look for all of the following EXCEPT:

A)   the specialist short-sale ratio to fall below 30%.

B)   increases of debit balances in brokerage accounts.

C)   the rate of inflation to drop below 3%.

D)   the yield spreads between high and low quality bonds to narrow.

The correct answer was C)

Inflation is not an indicator of money flows. Increases in debit balances are a bullish sign. Short sales ratio falling below 30% indicates specialists are buying. Narrowing of the yield curves is considered a sign of confidence in the market.

8.If only 16% of stocks are selling above their 200-day moving average, technical analysts would most likely:

A)   Buy stocks.

B)   Sell stocks.

C)   Buy T-bills.

D)   Sell foreign stocks.

The correct answer was A)

With 16% of stocks selling above their 200-day moving average, the market is oversold. This is a bullish indicator for technical analysts who would buy out of favor stocks.

9.An investor who views the Treasury-Eurodollar (TED) spread and the (Barron’s) confidence index as smart-money indicators would consider increases in these measures to be:

TED Spread

Confidence Index

A)                                        Bullish   Bullish

B)                                        Bearish  Bullish

C)                                        Bullish   Bearish

D)                                        Bearish  Bearish

The correct answer was B)

If the Treasury-to-eurodollar spread widens, money is rushing into T-bills, indicating unease about future economic prospects. An increase in the confidence index (high grade bond yield/average bond yield) toward one indicates that bond investors are bullish about future economic prospects.

10.If the CBOE put/call ratio stands at 0.2, then the market:

A)   is bearish, and contrarians are bullish.

B)   and contrarians are bearish.

C)   and contrarians are bullish.

D)   is bullish, and contrarians are bearish.

The correct answer was D)

A put/call ratio of 0.2 indicates that there are more calls in the market than puts. Thus, the market would be bullish and contrarians would be bearish.