CFA Practice Question
Which of the following is most likely correct?
A. Confidence index and margin debt are contrary opinion indicators.
B. Mutual fund cash position and CBOE Put/call ratio are smart money indicators.
C. Short interest is a general market indicator.
Explanation: Confidence index and margin debt are smart money indicators. Mutual fund cash position and CBOE Put/call ratio are contrary opinion indicators.
User Contributed Comments 3
| User | Comment |
|---|---|
| praj24 | Smart Money Indicators: - Confidence Index - Margin Debt General Market Indicators: - Breadth of Market - Short Interest |
| vncld | Isnt Short interest supposed to be a Sentiment indicator? |
| connor15 | Yes. A short interest is the quantity of stock shares that investors have sold short but not yet covered or closed out. Short interest is a market-sentiment indicator that tells whether investors think a stock's price is likely to fall. Short interest can also be compared over time to examine changes in investor sentiment. Investors use short interest to make predictions about the direction a particular stock is headed, and to measure the bullishness or bearishness of investors' sentiment towards the market as a whole. |