Tech Analysis 2

CFA Level I
#1

Which of the following would be a bullish signal to a technical analyst using contrary opinion rules? a. The level of credit balances in investor accounts declines. b. The ratio of bearish investment advisors to the number of advisory services expressing an opinion increases. c. A large proportion of speculators expect the price of stock index futures to rise. d. The ratio of over the counter (OTC) volume to New York Stock Exchange (NYSE) volume is relatively high.

#2

B

#3

b. The ratio of bearish investment advisors to the number of advisory services expressing an opinion increases.

#4

B here as well

#5

great, so TA should be a breeze for all of us. Any hard TA questions out there?

#6

Dreary Wrote: ------------------------------------------------------- > great, so TA should be a breeze for all of us. > Any hard TA questions out there? I haven’t spent alot fo time on TA, but some questions can be tricky. I always get confused on the ratios of would would constitute a bullish or bearish opionion.

#7

B gimme a hard one : )

#8

Take this, when the confidence index is up, is it bullish or bearish?

#9

bullish contrarian-bearish

#10
  1. When there is a lot of buying on margin, is it bullish or bearish?
#11

that should be bulish expectations of underlying prices going up, or bearish for contrarians?

#12

agree

#13
  1. when the confidence index is up, is it bullish or bearish? 2) When there is a lot of buying on margin, is it bullish or bearish? Put your answers now.
#14

I would say bulish & bearish contrarian for both.

#15

same

#16

I agree Bullish and bearish

#17

> I would say bulish & bearish contrarian for both. no that’s not an acceptable answer! What does that say??

#18

For both questions, the described scenarios indicates a bearish signal for an technical analyst using contrary opinion rules. A bulish signal otherwise.

#19

Check your answers: 1) when the confidence index is up, is it bullish or bearish? It is bullish… 2) When there is a lot of buying on margin, is it bullish or bearish? It is bullish. But be careful, they don’t always tell you about type of investor. They expect you to know which indicators are used by which type.

#20

Remember, all those tech boom people LOVED buying on margin.