Exercise #4


Using the Sector Distribution Curve pictured here, answer the following questions.

2.) Which statement most accurately describes the Drug sector.

A. The Sector Bullish Percent chart is in X's and the group is Favored. This is a sector to overweight in the portfolio.

B. The Sector Bullish Percent chart is in O's in oversold territory and the group is Unfavored. This is a sector that should be underweighted in the portfolio.

C. The Sector Bullish Percent chart is in O's and the group is Average. When the sector reverses up to X's, selective purchases can be made.


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