If mutual fund portfolios have a lot of money, technical traders would
A. buy
B. sell
C. hold
explain why
2007-07-25 11:23:58 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
what would technical analysts interpret this as
2007-07-25 12:19:35 · update #1
That is a very bad question. You can tell the teacher a 12+ year CFP said that.
I THINK they are getting at technical trading tactics which say when tons of cash are on the sidelines (uninvested) the smallest positive blip in the market could cause a buying panic with MF managers afraid of missing an up market, having their funds underperform and all of the consequences that go along with that.
If sideline cash is high enough and sentiment is at least neutral, a few consecutive up days could lead to a strong short term market. That is probably what the teacher is getting at, but it was a very poor way to put it.
2007-07-26 08:34:22 · answer #1 · answered by KevK 2 · 0⤊ 0⤋
Technical traders would not trade on a mutual fund solely based on how much "money" it has. That would make no sense. Anyone telling you otherwise has no idea what their talking about.
2007-07-25 18:43:41 · answer #2 · answered by Common Sense 7 · 0⤊ 0⤋
Tell your teacher that I said his question is stupid.
2007-07-25 19:50:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋