Other Considerations – Quiz #6 Welcome to Other Considerations - Quiz #6! 1. Name two market hedging vehicles Inverse ETF’s & hedge funds. Seasonally strong sectors & low beta stocks. Beats me – I wasn’t paying attention during that part of the course! 2. Why do you leg into a stock rather than commit all at once? Legging into a stock allows you to buy as the move confirms your bullish analysis. Legging in might cause you to miss out on a big move. Legging in limits your risk if the trade goes against you. Both A & C. 3. Describe the basic behavioural characteristics of the three EWT primary waves and 2 Corrective waves 1 Smart money buys, 3 Crowd buys, 5 Dumb money buys concentrated overvalued stocks. A Smart money sells, C Dumb money capitulates. 1 Smart money sells, 3 Crowd sells, 5 Dumb money buys concentrated overvalued stocks. A Smart money buys, C Dumb money capitulates. 4. Since 2008, what has happened every time monetary or fiscal stimulation ended? Whenever the Fed has taken Mr. Market’s stimulus-candy away, Mr. Market has a tantrum. Markets rise and fall with little correlation to Fed decisions. Markets rise immediately after stimulus programs end. Time's up Post Navigation ← Previous PostNext Post → Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment.
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