Reading 12: Technical Analysis - LOS c ～ Q11-12 average, selling, technical, only

mayanfang1

Q11. If only 16% of stocks are selling above their 200-day moving average, technical analysts would most likely:

A)   sell stocks.

B)   buy T-bills.

C)   buy stocks.

Q12. To determine whether smart investors are bullish, smart money technicians will least likely look for:

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

B)   decreases in quality spreads in the bond market.

C)   increases of debit balances in brokerage accounts.

mayanfang1

答案和详解如下：

Q11. If only 16% of stocks are selling above their 200-day moving average, technical analysts would most likely:

A)   sell stocks.

B)   buy T-bills.

C)   buy stocks.

Correct answer is C)

With less than 20% of stocks selling above their 200-day moving average, the market is oversold. This is a bullish indicator for technical analysts who use momentum indicators.

Q12. To determine whether smart investors are bullish, smart money technicians will least likely look for:

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

B)   decreases in quality spreads in the bond market.

C)   increases of debit balances in brokerage accounts.

Correct answer is A)

Inflation is not an indicator of money flows. Increases in debit balances and decreases in the spread between average-quality and high-quality bonds are bullish signs to smart-money technicians.

Hzhenming

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zeraeh

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riverzhong

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hjl2000

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connie198226

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kgbvvsscia

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