Strategy Intermediate: Market Timing

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1.
Market timing uses fundamental analysis to predict market changes.
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False. Market timing uses technical analysis to predict market changes.
2.
One advantage of market timing is that it gives you a strategy.
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True. It gives you a strategy you can use.
3.
Market timers try to buy high and sell low.
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False. Market timers try to buy low and sell high.
4.
The best time to buy a stock is when its price chart is closest to its _______.
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Support level. The best time to buy a stock is when its price chart is closest to its support level.
5.
A company that uses market timing to switch its investments among mutual funds is called a timing service.
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True. This is the definition of a timing service.