CFA Practice Question

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
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