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INDICATORS AND RELATIONSHIPS THAT MEASURE CONFIDENCE

Questions

Subjects to Be Covered

Interpretation of confidence ratios

The importance of consumer staples

Bond market confidence ratios

Inflation-protected versus regular bonds

1. What is the common thread between negative divergent action from an A/D line and relationships such as the relative action of consumer staples?

A. There is a broad measure of a subtle loss of confidence by market participants.

B. There are a lot of stocks in the consumer staples sector, so it mimics the A/D line.

C. The A/D line has nothing in common with consumer staples.

2. True or false: When a confidence ratio fails to confirm a new low in a market average, it is a sign of strength that, when confirmed by price ...

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