Exercise #5


Utilizing the information on Exchange Traded Funds (ETFs), answer the following questions.

1.) The Dorsey, Wright Drug sector has reversed up to X's from below 30%. Any ETF with drug exposure can be purchased.

Your answer was A. True

That is incorrect. While many ETFs have the same components as the DWA sectors, the weighting of those stocks can make a tremendous difference. Each ETF should be evaluated on an individual basis paying particular attention to its individual chart pattern and relative strength readings.

Go back to the question.