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Exercise #4
Using the Sector Distribution Curve pictured here, answer the following questions.
1.) Which statement most accurately describes the Drug sector.
Your answer was A. The Sector Bullish Percent chart is in X's and
the group is Favored. This is a sector to overweight in the portfolio.
This is incorrect. If the bullish percent chart is in X's, the sector will be
listed in capital letters and the Drug sector is in lowercase. If the group is Favored, the shading will be green.
The Drug sector is Average because the shading is yellow. The scenario of the bullish percent chart in X's and
Favored is one that we would want to overweight in the portfolio but the Drug sector doesn't have those characteristics.
A sector like Oil (OIL) does have those traits.
Go back to the question.
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