CFA Practice Question
Which of the following is most likely incorrect?
A. The general market indicator short interest says that an increase in short interest is a bearish signal.
B. The Dow Theory says that if one of the averages (industrial or transportation) exceeds a previous high, then the other average will also trend upwards.
C. The smart money indicator margin debt says that an increase in margin is a bullish signal.
Explanation: The general market indicator short interest says that an increase in short interest is a bullish signal.
User Contributed Comments 3
| User | Comment |
|---|---|
| GBolt93 | Is this because it will eventually result in a short squeeze? |
| harrybay | Seems like it's the rationale they are employing |
| sshetty2 | I thinking more investors are borrowing on margin to short sell indicating a an increase in general market activity |