Ftse

[interestrateripoff]

What do you think will happen when these people run out of the end of these schemes? The government are going to have to significantly cut spending, new mortgage protection schemes will not feature highly.

Who is betting once the Tories get in, they find an absolute horror story of public finance disaster? I am betting on it!

Yes it's an excellent scorched earth policy.

As I said on another thread, Brown is going to leave the Tories a huge repossession timebomb. The voters will all say the nice Mr Brown didn't evict everyone like the Tories are doing and just look at all the cutbacks in public services, aren't the Tories a nasty bunch.

[mbga9pgf]

Yes it's an excellent scorched earth policy.

As I said on another thread, Brown is going to leave the Tories a huge repossession timebomb. The voters will all say the nice Mr Brown didn't evict everyone like the Tories are doing and just look at all the cutbacks in public services, aren't the Tories a nasty bunch.

Which, after having to meet the man for 2 hours, I think the man is a F*cking ****.

[R K]

Most TA seems to be voodoo, but there is some logic behind resistance levels on individual houses. It's simply a way of accounting for market memory, people are psychologically sticky about the levels that they buy and sell at. It does seem strange to see them used on indices like the Nationwide though - very little of the price is directly affected by buying and selling. Most of the change is caused by alterations in the prices of the houses that make up the index. So resistance / support levels don't really have a sound basis.

Amended for you.

[Joey Buttafueco Jr]

Amended for you.

Do computers have market memory?

[R K]

Do computers have market memory?

Why aren't you a buyer of house at 20% over the index Noel?

[Bloo Loo]

So, let's say I have a house that was valued at £500k at the peak - it's now valued at, say, £400k.

You're prepared to give me £600k for it today are you? If so, PM me.

yeah but buying one house is not the market. what the guys are saying is if a number of shares from different markets all index out above a certain level, then its going to go to the next level, or down to the new floor.

course, the FTSE is a trade weighted index, so seems odd to me, as another poster mentioned, that they apply the logic to the index, I mean, vodaphone drops 10 points, the index is down 50 ( or something like that).

and my limit on house purchase is determined solely by A: how much cash I have and B: how much I can borrow.

[Joey Buttafueco Jr]

Why aren't you a buyer of house at 20% over the index Noel?

I genuinely have no idea what relevance that has to do with resistance levels. Housing and stock market are massively different.

[R K]

I genuinely have no idea what relevance that has to do with resistance levels. Housing and stock market are massively different.

You said you would buy an asset you wanted (house) at 20% below current price. Which suggests you know what the current price is, what the current trend is and you're making some guess about the future based upon that.

So if you have a price resistance level is it not reasonable to conclude that other market participants do too? Or are you unique perhaps.

[Joey Buttafueco Jr]

You said you would buy an asset you wanted (house) at 20% below current price. Which suggests you know what the current price is, what the current trend is and you're making some guess about the future based upon that.

So if you have a price resistance level is it not reasonable to conclude that other market participants do too? Or are you unique perhaps.

I don't think we should be using houses as an example

a). Not homogenous

. Illiquid

c). Hard to value due to very low turnover.

d). Sticky on the way down

Very different to stock market. Anyway, as I said on another thread, I buy into evidence based TA, so where is the evidence of resistance levels on the FTSE 100?

[R K]

I don't think we should be using houses as an example

a). Not homogenous

. Illiquid

c). Hard to value due to very low turnover.

d). Sticky on the way down

Very different to stock market. Anyway, as I said on another thread, I buy into evidence based TA, so where is the evidence of resistance levels on the FTSE 100?

Sounds like many small caps.

You don't need me to post FTSE charts.

So, you have no basis for ascertaining house prices, no way to know if they're going up or down, no measure of transaction volume and just pulled 20% out of the air? Interesting.........

[Bloo Loo]

You said you would buy an asset you wanted (house) at 20% below current price. Which suggests you know what the current price is, what the current trend is and you're making some guess about the future based upon that.

So if you have a price resistance level is it not reasonable to conclude that other market participants do too? Or are you unique perhaps.

well, the price resistance level in the housing market is difficult to ascertain, as each "stock" is different.

[Joey Buttafueco Jr]

Sounds like many small caps.

You don't need me to post FTSE charts.

So, you have no basis for ascertaining house prices, no way to know if they're going up or down, no measure of transaction volume and just pulled 20% out of the air? Interesting.........

My 20% was from from the fact that the indices aren't posting anywhere near these falls, so I could hedge to my theoretical fish and chip outlay for a smallish cost. Hedging is another thing that is difficult to do with housing.

"So, you have no basis for ascertaining house prices,"

At a national or local level?

[BubbleBlower]

Amended for you.

And it's a good revision, couldn't have written it better myself Cogs has already made some other comments about how support and resistance make no sense on house price indices. I would just add to them by pointing out that I've never heard of anyone on here doing TA on house prices looking for good times to buy and sell. Most people are looking at the sustainable levels of leverage versus wages which is an entirely different sort of measure.