Stock Market

Since the invention of money perhaps no other system has been responsible for the creation or destruction of more wealth than the stock market. Yet, it remains one of the most misunderstood financial systems we have. These articles will give you a look at how the system works and how you can put it to work for you. I encourage you to read all of these articles. Although the titles may sound familiar, I assure you the content is different than you have read before. The subtle details are what make the markets so misunderstood, and these articles will guide you through those details.

Financial Terms and Concepts

Start here to get a feel for those financial phrases, terms and concepts that get thrown around in all those news stories.

Understanding Stocks

Here is your encyclopedia of stock information.

And here is the surprising truth about what a stock is.

The Market Headlines

One of the best ways to get a handle on the how in the short term the market can be fickle is to read the daily headlines. Note in particular how the daily explanations become nonsensical as you read them in context.

  • 01/28/08 - Up because: Weak Home Sales Mean Interest Rate Cut
    • "Stocks surged Monday, as investors took the morning's weak new home sales report and mixed earnings news as further evidence that the Federal Reserve will keep cutting interest rates."
  • 01/29/08 - Up because: Strong Durable Goods report and Good Earnings
    • Stocks rallied Tuesday, gaining for the second session in a row as investors welcomed a strong read on durable-goods orders and some upbeat earnings, on the first day of the Federal Reserve policy meeting.
  • 01/30/08 - Up because: Fed Cuts Interest Rates
    • Stock gains accelerated Wednesday afternoon after the Federal Reserve cut a key short-term interest rate by a half-percentage point, as expected, and indicated in its statement that it would continue to lower rates, as needed.
  • 01/31/08 - Up because: Powerful Bond Rater (MBIA) Says Good Things
    • Wall Street rallied Thursday, ending a miserable January on a high note, after comments from bond insurer MBIA helped temper worries that a meltdown in that sector was the next leg of the credit market fallout
  • 02/01/08 - Up because: Microsoft Yahoo Deal
    • U.S. stocks on Friday ended higher for a fourth day in five, with the major indexes all scoring weekly gains, lifted by software giant Microsoft Corp.'s blockbuster $44.6 billion bid for Internet search engine Yahoo Inc.
  • 02/04/08 - Down because: Financial Firms Downgraded and Investors Sold After Rally
    • U.S. stocks moved lower Monday, with investors trimming positions following a rally that saw the market rise in four of the previous five sessions, while the stocks of troubled financial firms also suffered from several broker downgrades.
  • 02/05/08 - Down because: Federal Reserve Member says that rate cuts shouldn't be "too aggressive"
    • U.S. stocks on Wednesday fell for a third day as Philadelphia Federal Reserve President Charles Plosser spoke against overly aggressive rate cuts, with the talk dampening a rebound from the market's largest single-day plunge in nearly a year.
  • 02/06/08 - Up because: Weak Home Sales Mean Interest Rate Cut
    • "Stocks surged Monday, as investors took the morning's weak new home sales report and mixed earnings news as further evidence that the Federal Reserve will keep cutting interest rates."
  • 02/07/08 - Up because: Strong Durable Goods report and Good Earnings
    • Stocks rallied Tuesday, gaining for the second session in a row as investors welcomed a strong read on durable-goods orders and some upbeat earnings, on the first day of the Federal Reserve policy meeting.
  • 02/08/08 - Down because: Commodity Prices Up (Inflation Worries)
    • U.S. stocks' losses deepen as economic worries weigh. U.S. stocks on Friday skidded to weekly losses as the price of oil and other commodities soared, sparking concern about inflation and an already slowing economy, with only the technology-driven Nasdaq Composite eking out a daily gain.
  • 02/11/08 - Up because: Yahoo rejects Microsoft
    • U.S. stocks recover despite AIG auditor doubts. U.S. stocks on Monday recovered from losses inspired by insurer American International Group Inc.'s disclosure of potential credit-related trouble, as technology shares rose after Yahoo Inc.'s rejection of Microsoft Corp.'s takeover offer.
  • 02/12/08 - Up because: Warren Buffet makes a credit market offer
    • U.S. stocks rally after Buffett bailout bid Dow scores triple-digit rise in cross-sector rally. U.S. stocks on Tuesday headed to their biggest gain so far this month, with the equities market drawing a psychological lift from billionaire investor Warren Buffett's proposed buyout of bond insurers' liabilities.
  • 02/13/08 - Up because: Strong Retail Sales
    • U.S. stocks rally as retail-sales rise. U.S. stocks on Wednesday stretched gains into a third day, with technology leading the way, as investors played off stronger-than-expected January retail sales after an atrocious December as a reason to buy equities..
  • 02/14/08 - Down because: Fed Chief Says Economy Going Down
    • U.S. stocks slide as Fed chief downgrades economy. U.S. stocks on Thursday turned tail after a three-day climb after Federal Reserve Chairman Ben Bernanke acknowledged that the central bank is projecting slower growth for 2008 than in past forecasts.
  • 02/15/08 - Down because: Decline in U.S. Consumer Confidence
    • U.S. stocks on Friday closed with weekly gains despite extending losses into a second day, dragged down by declines in both U.S. consumer confidence as well as factory activity in the New York region, while a lowered forecast from Best Buy Co., the nation's largest electronics retailer, added to the negative tone.
  • 02/18/08 - President's Day - Markets Closed
  • 02/19/08 - Down because: $100 barrel oil
    • U.S. stocks reversed course and closed lower Tuesday after crude oil settled above $100 a barrel for the first time, spooking investors. U.S. stock rally fades as crude passes $100 a barrel. Wal-Mart profit calms worries about slowdown in consumer spending
  • 02/20/08 - Down because: Financial Firms Downgraded and Investors Sold After Rally
    • U.S. stocks moved lower Monday, with investors trimming positions following a rally that saw the market rise in four of the previous five sessions, while the stocks of troubled financial firms also suffered from several broker downgrades.

Coming Soon

The Stock Market Primer You've Never Read Before
The Indexes - What is "The Market"
The Other Markets: Options, Commodities, International
Stock Market Theories - A 101 Level Crash Course
Day Trading and Short Term Market Timing
Crashes, Corrections, Recessions, Depressions
You Heard It Too Late - A Treatise On How Information Is Spread in the Digital Age
Front Page News = Old News