I heard that the housing market being low in sales and with the forclousure market crashing, it is affecting investors so much that they are moving money out of equities (stocks) and investing more in safer investments. Thats why the stock market has been down so much in the past week.

How does this happen? I was reading about it, but I didn't really understand. Are investors pulling out their stocks from big lenders? How exactly does it affect the stock market? I need help understanding it in normal terms that make sense.

Please advise, thank you!!

It's purely psychological. The "housing market" is really the "real estate" market which accounts for a lot of money. There is also a lot of related industries which is affected if the real estate market goes down. First is the home builders or construction industry (contractors), then there is the materials suppliers, then the mortgage industry which makes loans to buyers and then there's the real estate agents, title companies, escrow companies, home insurance companies, furniture companies - all their jobs hang on how well the housing market is doing. They were in fear for the past 2 years when the housing or real estate market peaked and began sliding down. Investors in the stock market finally decided that there is too much fear and decided to sell their stocks. Selling causes the stock market to drop.

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This video lays out the underlying reasons behind the market crash. very telling

Also note this is not just a normal market correction, this is the begining of the collapse of our monetary system.

WAKE UP

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Technorati Tags: black, cards, crash, dollars, Dow, euro, fed, federal, house, Market, moneytary, nasdaq, of, paul, policy, reserve, ron, Stock, tuesday

This short video is designed to explain a complex investing subject to the average person. Learn how inflation is affecting your investments. The video starts very slowly, builds on basic concepts and then pulls it all together for a clear perspective at the end. From the serious investor to the average person, we believe anyone watching can relate to the important message within.

Duration : 0:9:55

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Technorati Tags: Charts, Contrarian, Dow, Gold, Inflation, investing, Investment, Investmentscore.com, jones, Score, Silver, video

Jun 25 - The Dow and the Nasdaq put an end to three days of losses as comforting words from the Federal Reserve, lower oil prices, and earnings optimism buoyed sentiment.

The Dow gained 4 points to 11,811. The S&P 500 rose 7 points to 1,321. The Nasdaq gained 32 points to 2,401.

Crude oil fell $2.45 a barrel to settle at $134.55.

Conway Gittens reports.

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Bud Fox (Sheen) dreams of the luxury and power at the pinnacle of Wall Street investment banking. Stewie Griffin dreams of world domination: diapers never held a man back from rising to the top. Fox charms his way up with the help of Gordon Gekko (Douglas), in a world that values high-risk greed over low-yield ethics. Fox will soon find he is pit against his mentor in a winner-takes-all contest that neither can afford to lose, while little Stewie will continue to wreak havoc on the Griffin household and the world at large.

Duration : 0:1:37

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http://www.informedtrades.com/
A Lesson on Bollinger Bands for active traders and investors using technical analysis in the forex, futures, and stock markets.

The link that I refer to on Standard Deviation is here: http://en.wikipedia.org/wiki/Standard_deviation

The link that I refer to with more resources on Bollinger Bands is here:

http://www.informedtrades.com/tags/index.php/bollinger%20bands/

In our last lesson we learned about the Stochastic Oscillator and how traders use this in their trading. In today’s lesson we are going to learn about an indicator which helps traders gauge the volatility and how current prices compare to past prices.

Bollinger Bands are comprised of three bands which are referred to as the upper band, the lower band, and the center band. The middle band is a simple moving average which is normally set at 20 periods, and the upper band and lower band represent chart points that are two standard deviations away from that moving average.

Example of Bollinger Bands:

Bollinger bands are designed to give traders a feel for what the volatility is in the market and how high or low prices are relative to the recent past. The basic premise of Bollinger bands is that price should normally fall within two standard deviations (represented by the upper and lower band) of the mean which is the center line moving average. If you are unfamiliar with what a standard deviation is you can read about it here http://en.wikipedia.org/wiki/Standard_deviation. As this is the case trend reversals often occur near the upper and lower bands. As the center line is a moving average which represents the trend in the market, it will also frequently act as support or resistance.

The first way that traders use the indicator is to identify potential overbought and oversold places in the market. Although some traders will take a close outside the upper or lower bands as buy and sell signals, John Bollinger who developed the indicator recommends that this method should only be traded with the confirmation of other indicators. Outside of the fact that most traders would recommend confirming signals with more than one method, with Bollinger bands prices which stay outside or remain close to the upper or lower band can indicate a strong trend, a situation that you do not want to be trading reversals in. For this reason selling at the upper band and buying at the lower is a technique that is best served in range bound markets.

Example of Buying and Selling at the Upper and Lower Band:

Large breakouts often occur after periods of low volatility when the bands contract. As this is the case traders will often position for a trend trade on a break of the upper or lower Bollinger band after a period of contraction or low volatility. Be careful when using this strategy as the first move is often a fake out.

Example

As Bollinger bands paint a good picture directly on the price chart of how high or low price is relative to historical prices, this is a good indicator to use in conjunction with other methods such as some of the chart patterns that we have learned so far and some of the candlestick patterns which we will learn in future lessons. Below is one such example:

As Bollinger Bands are one of the most popular indicators around I have created a special page on InformedTrades.com which lists multiple resources for those looking for more information on trading Bollinger Bands.

That’s our lesson for today. You should now have a good understanding of Bollinger bands and how traders use these in their trading. In our next lesson we are going to go over the Average Directional Index or ADX, which helps traders identify the strength or weakness of a trend so we hope to see you in that lesson.

As always if you have any questions or comments please feel free to have them in the comments section below, and have a great day!

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http://www.alphatrends.net

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bolsa de valores dentro del MERCADO ELECTRONICO “DOW JONES “NASDAQ”"

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visit www.alphatrends.blogspot.com for more analysis

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Technorati Tags: analysis, average, fibonacci, invest, moving, stocks, technical, trading

Cramer is crying out for a rate cut. Be sure to check out another Cramer video from July on a very similar topic.

http://www.youtube.com/watch?v=BVl9SQ-KVmE&mode=related&search=

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Technorati Tags: cnbc, cramer, cut, fed, jim, mad, Market, money, rate, signs, stocks, Street, Wall