HERE IS HOW MARKETS GO HIGHER- TECHNICAL ANALYSIS FROM S&P MARKET SCOPE. "The technical condition of the market improved last week as shown by the sharp increase in the Momentum Index and the steady gains in the Strength Indexes. Although there wasn't a lot of upside movement in stocks for the period, the underlying strength in the NYSE A/D line coupled with a better showing in the new highs/new lows points to much needed strengthening in the market's internals. The NYSE A/D line has now shown improvement for the last two weeks in a row, something it hasn't done since the end of January. The DJIA was able to advance from 12099.30 to a close of 12743.19 during that period. On the daily charts the MACD L-T, which is a reliable indicator in spotting trend reversals, has given bullish signals for all of the major averages with the exception of the DJ Utilities and the NYSE. Finally, most of the major averages crossed over their 50-day moving averages only to slip back below as the week ended. If stocks can regain these important levels it would be a big positive going forward. While some of the negatives that we talked about last week have been resolved in favor of the bulls, there remain several concerns that can keep a lid on stocks over the near term. Except for Monday's action, stocks were unable to gain much momentum to the upside as buyers were unable to find a catalyst to push the averages higher. Despite several attempted rallies during the week, volume was low and the bears were able to gain the upper hand as the day came to an end. This type of trading action has been a reversal of what we've seen over the last couple of weeks. Also, the economic reports remain dismal while investors remain overly bearish. While negative sentiment is a contrarian indicator, it can sometimes take a while before a turnaround in the market unfolds. Overall, we continue to see improvement in the market and anticipate a move to at least 12767 on the DJIA and 1396 on the S&P 500, which are respective areas of resistance. While daily trading activity has been producing a pattern of lower highs as well as lower lows, which is a negative condition, it looks and feels as though the bulls may be mounting an attack. Unfortunately, last week's sell-off pushed the DJIA and the S&P 500 back into the red for the month. The NASDAQ may be one of the first major markets to break its four month losing streak. " Get it ?
Your first mistake is assuming I am not a homeowner and missed the boat. I am not grandmas basement tenant as you assume. You make sense when you say people will want a home sooner or later and the dam will break and people will start to buy again. Yes, those people are the very young and starting out in life. Who you neglect to see is the not very young, but not very old people who are looking to upgrade. They know the game now. They are not so desperate to break the dam. They will wait becasue they have comforts of their home and don't live in grandmas basement.
So by this logic the NASDAQ was a great buy at 4000 and an even better buy at 3500 on the way down... since stocks always go up and in 5-10 years you'll be good, especially if you get to keep some dividends.
This logic of hedgefund is only good for those who profit at the high end and get out of the game....no waiting for them 5 - 10 years to realize gains. They make immediate gains on the sell, no wait, then move on. Ok, thats the name of the game. But now is very volatile..more than 2000 2003. How high can the homes be priced when income does not match up anymore? Starter homes are out of the league of starter people income... young people. No balance right now.
LMFAO, chinese adr's are down because they are domiciled in the U.S. hahaha. so if those adr's were not traded in the U.S they would be higher? hahahaha
I am sorry if I mistook you for somebody else. My bad. Majority of home buyers are between the ages 25-35 age group. than there are people who upgrade. Owning a house is a necessity but not like food and groceries and transportation. The absence of demand or lack of buyers has created this financial fiasco and withered our national self confidence and now has spread and threatened our financial markets. You can hold back only so long and when you see your life and youth passing by one day you see a house for sale and you dial that number on your cell phone. It can only last a few years after that as I have seen in previous real estate cycles the whole dam breaks loose. Feds cut rates, lenders become easy to deal and so one. There is a stampede to get in and buyers are circling properties knocking on doors at odd hours and making a fool of themselves... and real estate markets go on fire. Its always a boom or bust in this industry, nothing even or steady.
Technically they are domiciled here, but these are Chinese companies in a red hot economy and yet they are treated by the same doom and gloom club like they were US stocks. Traders in the US will take and thrash anything down. Just look at the charts of some great companies and what do you see? Massive damage done to them. Charts of GOOG, AAPL, BIDU destroyed beyond belief. What do you see? Fear, anger, hopelessness, and a will to obliterate your own future.
Yes, it is boom or bust, that is right. But we are reaching a time when homes became so inflated in price and new buyers average income can not afford... (sellers and lender banks) wanted to keep the ball rolling in their favor for take the money and run, so they made liars loans, cheap credit, head in the sand when it came to ratio of income/debt. Just make the deal and pass the ball. It has boomerang back to haunt the people who first profited. It is not good economics. And people who took tha bait (the homebuyers were part greedy/part naive