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Flashcards in nine calculations Deck (14):
1

52., On day 1, the stock price of Ford was $12 and the automotive stock index was 127. On day 2, the stock price of Ford was $15 and the automotive stock index was 139. Consider the ratio of Ford to the automotive stock index at day 1 and day 2. Ford is __________ the automotive industry, and technical analysts who follow relative strength would advise __________ the stock.


A. , outperforming; buying

B. , outperforming; selling

C. , underperforming; buying

D. , underperforming; selling

A. , outperforming; buying

#52 Calculation


Since the ratio is increasing, the relative strength of Ford is improving; it is outperforming and should be bought.

2

53., At the end of July, the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 7.65% and 8.42%, respectively. At the end of August, the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 6% and 6.71%, respectively. The confidence index _________ during August, and bond technical analysts are likely to be ________.


A. , increased; bullish

B. , increased; bearish

C. , decreased; bullish

D. , decreased; bearish

D. , decreased; bearish


#53 Calculation

Since the confidence index decreased, this would be considered a bearish signal.

3

54., On a particular day, there were 890 stocks that advanced on the NYSE and 723 that declined. The volume in advancing issues was 80,846,000, and the volume in declining issues was 70,397,000. The common measure of market breadth is __________.


A. , -10,449,000

B. , -167

C. , 167

D. , 10,449,000

C. , 167



Market breadth = 890 - 723 = 167

4

55., On a particular day, there were 920 stocks that advanced on the NYSE and 723 that declined. The volume in advancing issues was 80,846,000, and the volume in declining issues was 70,397,000. The trin ratio is __________, and technical analysts are likely to be __________.


A. , .90; bullish

B. , .90; bearish

C. , 1.11; bullish

D. , 1.11; bearish

D. , 1.11; bearish


#55 Calculation

5

The confidence index on day 1 is _____.

#65 calculation

A. , .82

B. , .89

C. , .92

D. , 1.09
Confidence index on day 1 = 6.8/7.4 = .92

C. , .92



Confidence index on day 1 = 6.8/7.4 = .92

6


The breadth on day 3 is _______.

#66 Picture calculations
A. , -70

B. , 10

C. , 90

D. , 170


D. , 170

Breadth on day 3 = 960 - 790 = 170

7

67. The cumulative breadth for the first 2 days is ___.

picture

A. , -240

B. , -50

C. , 110

D. , 250

A. , -240

Cumulative breadth, days 1 and 2 = (870 - 880) + (760 - 990) = -240

8

68. Cumulative breadth for the 4 days is ___, which is ___.
PICTURE!!@
A. , -140; bullish

B. , -140; bearish

C. , -300; bullish

D. , -300; bearish

B. , -140; bearish


Cumulative breadth, days 1-4
= (870 - 880) + (760 - 990) + (960 - 790) + (840 - 910) = -140
Negative cumulative breadth is bearish.

9

69. From day 1 to day 4, the trin has ___ and is ___.

PICTURE
A. , increased; bullish

B. , increased; bearish

C. , decreased; bullish

D. , decreased; bearish

C. , decreased; bullish


The trin has decreased, and this is bullish.

10

70. From day 1 to day 4, the confidence index has _____. This is _____.


A. , increased; bullish

B. , decreased; bullish

C. , increased; bearish

D. , decreased; bearish

D. , decreased; bearish

Confidence index, day 1 = 6.8/7.4 = .92
Confidence index, day 4 = 6.6/7.6 = .87
The CI is decreasing; this is bearish.

11

76. Identify the resistance-level stock price.


A. , $40

B. , $42

C. , $44

D. , $46

D. , $46

12

77. Identify the support level stock price.


A. , $40

B. , $42

C. , $44

D. , $46

A. , $40

13

82. The moving average generates buy signal(s) _____.


A. , on days 3, 11, and 15

B. , on days 2 and 16

C. , on days 5, 9, and 13

D. , on no days

B. , on days 2 and 16

14

The moving average generates sell signals _____.


A. , on days 3, 11, and 15

B. , on days 7, 15, and 18

C. , on days 5, 9, and 13

D. , on day 16

B. , on days 7, 15, and 18