Questions on the scheduled events that move every stock at once, why rates matter to valuations, what the VIX measures and what happens when trading is halted.
Test yourself
One question from each lesson in this topic. Pick an answer to see why, then open the lesson if you want to review it.
Question 1 of 14
Each row shows a hypothetical monthly CPI forecast (dashed tick) and the actual print (dot) on the same scale. Which row is the biggest upside surprise?
Question 2 of 14
The drawing shows one-minute candles and, below them, the bid-ask spread around an 8:30 a.m. ET release. What does it suggest for an order that executes in the first minute after 8:30?
Question 3 of 14
Before a report, the options market priced a move of about ±$8 on a $100 stock: the hatched band in the drawing. Which opening move was larger than that implied move?
Question 4 of 14
In the drawing, why did the loss reach about 2.5R instead of the planned 1R?
Question 5 of 14
The drawing shows one column of an illustrative dot plot: nine officials, one dot each. Which letter marks the row of the median dot?
Question 6 of 14
Following the chain in the drawing: a company earns $5 a share and trades at 25 times earnings ($125). Higher yields lead investors to pay only 20 times. With earnings unchanged, what is the new price?
Question 7 of 14
Each panel shows a VIX futures curve: the big dot is spot VIX and the smaller dots are futures for later months. Which panel shows contango?
Question 8 of 14
In the drawing, the VIX doubles from 16 to 32 and the stop is widened from $7.50 to $15 a share. To keep the same $200 risk, the position goes from 26 shares to how many?
Question 9 of 14
Each panel shows the S&P 500 falling from yesterday’s close (dashed line), with the low of the drop and the time it was reached (ET). Which panel triggers a 15-minute halt of all US stocks?
Question 10 of 14
In the drawing, the stock slides down to its lower LULD band. What turns this into a 5-minute pause?
Question 11 of 14
Each panel shows an index (top line) and its advance/decline line (bottom line). Which panel shows a bearish breadth divergence?
Question 12 of 14
In the table, the A/D line stands at 700 after day 3. On day 4, 1,300 stocks rise and 2,000 fall. Where does the A/D line end day 4?
Question 13 of 14
Each drawing shows a fall from a market high to its low. Which one matches the Covid crash of 2020?
Question 14 of 14
In the drawing, why is the 2007–09 shape so much wider than the 2020 spike?
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