Exam 10: Behavioral Finance and Technical Analysis

______________ analysis focuses on charts and graphs based on internal market data, while _____________ analysis emphasizes earnings reports, management capabilities, and new product development.

The higher the mutual fund cash position,

The breadth of the market indicator:

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

The Dow Theory puts emphasis on long-run trends.

The Dow Theory maintains that there are three major fluctuations in the market: daily fluctuations, weekly fluctuations, and yearly fluctuations.

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

A point and figure chart is used to demonstrate:

Chartists do not consider volume significant in reading market indicators.

A high short interest ratio is considered bullish.

The Barron's Confidence Index is used to observe the trading pattern of investors in the stock market.

The support level is the stock price that generates new demand, while the resistance level is the price at which investors begin to sell in order to take a profit.

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

Contrary opinion rules or approaches to the market include:

A bar chart is used to demonstrate:

Odd-lot traders traditionally are assumed to be strong sellers right before the bottom of a bear market, but this is not always the case.

All of the following are smart money rules except:

Technical analysis is based on all of the following assumptions except:

A ratio of the total short sales positions on an exchange to average daily exchange volume for the month is normally

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