Differentiating between savvy and less smart groups of market participants
Interpretation of sentiment indicators
Substitutes for sentiment indicators
1. Which of the following tend to act in a manner contrary to that of the majority, i.e., who is usually correct as a group?
A. Market letter writers
E. C and D
F. All of the above
2. Why is it probable that short interest numbers have become distorted?
A. Because of the big bull market in the 1980s and 1990s
B. Because of the advent of futures and options, which increase arbitrage opportunities
C. Because it’s easier to short now more than ever
D. None of the above
3. True or false: When 90 percent ...