Discussion Questions Chapter 9

Discussion Questions Chapter 9 - 4. This tells us that the...

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Discussion Questions – Chapter 9 1. Technical analysis: an analysis of price and volume data as well s other related market indicators to determine past trends that are believed to be predictable into the future. Charts and graphs are often utilized. 2. They believe that even when important fundamental information is uncovered, it may not lead to profitable trading because of timing considerations and market imperfections. 3. Technical analysis: a. market value is determined solely by the interaction of demand and supply b. it is assumed that though there are minor fluctuations in the market, stock prices tend to move in trends that persist for long periods c. reversals of trends are caused by shifts in demand and supply d. shifts in demand and supply can be detected sooner or later in charts e. many chart patterns tend to repeat themselves
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Unformatted text preview: 4. This tells us that the market is turning from a bull market into a bear market. 5. Dow Jones Transportation Average. 6. It is a signal that new demand is coming into the market. 7. No. 8. The odd-lot theory suggests you watch very closely what the small investor is doing and then do the opposite. 9. You should be a buyer. 10. The Barrons Confidence Index suggests that a person who can figure out what bond traders are doing today may be able to determine what stock market investors will be doing in the near future. 11. It is a possible signal to the end of a bull market. 12. Contrary opinion: d. Barrons Confidence Index e. Investment advisory recommendations f. Put-call ratio Smart money indicators: a. Short sales by spets b. Odd-lot positions c. Short sales positions...
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