CMT-Level-II Practice Questions

A.  

Relative strength analysis allows for identification of the strongest and weakest sectors

B.  

Charting tools such as trendlines and moving averages should not be employed with relative strength lines

C.  

Sectors whose relative strength lines are just turning up after a downtrend should be sold

D.  

This analysis does not hold for options or mutual funds due to the unique characteristics of these securities

A.  

Market has its strongest year during first year of president's term, posts its worst returns during the pre-election year and slightly negative returns in election years

B.  

Market has an above average year during first year of president's term, posts negative returns during the pre-election year and its strongest returns in election years

C.  

Market has a below average year during first year of president's term, posts its strongest returns during the pre-election year or in the election year

D.  

Market has a below average year during first year of president's term, posts its strongest returns in the second year and reasonably strong returns during the pre-election and election years

A.  

Options, indexes and pyramiding

B.  

Options, indexes and currencies

C.  

Options, leveraging and pyramiding

D.  

Options, leveraging and currencies

A.  

A

B.  

B

C.  

C

D.  

D

A.  

Bullish or Bearish Triangle

B.  

Triple Top or Triple Bottom

C.  

Double Top or Double Bottom

D.  

Bullish or Bearish Fulcrum

A.  

A Business Week cover with a story on "The Death of Equities"

B.  

The vast majority of professional financial letter writers are bullish

C.  

CNBC is on the television at the local bar, and everyone is paying attention

D.  

Sales of investment books are increasingly dramatically

A.  

In an uptrend, volume should increase on down days

B.  

In a downtrend, volume should increase on up days

C.  

Price precedes volume

D.  

Volume precedes price

A.  

Bonds

B.  

Bullion

C.  

Precious metal

D.  

Energy

A.  

The signal line is also a moving average

B.  

It is most useful in a trending market

C.  

The calculation does not use any simple moving averages

D.  

If MACD has had a positive value for more than 12 periods, this is predictive of a reversal.