Program Trading

The definition of program trading does encompasses a range of
portfolio-trading strategies involving the purchase or sale of a
basket of at least 15 stocks with a total value of $1 million or
more. Last week, 50% and the week before 70%, of all the market's
volume of trades was caused by program trading.
Who are these traders?


I have never seen oil, natural gas, gold, and inflation go higher
without causing a significant drop in the stock market. Just this
week, the Alcalde, Alan Greenspan issued two different warnings in
two separate speeches, which the market ignored.

Why did the market ignore these warnings?
The large fund managers have been controlling this market since 2004
with program trading. Their short sighted focus on next quarter
earnings will cause them to miss the secular bear market that we
have been in for the last 5 years. They, using your money, will
decide when the market moves, and the direction of the market.

Last week trim tabs reported that mutual fund inflows of new money
was on the rise. The news media stock cheerleaders were touting the
positive benefits of the two hurricanes hitting the country. They
brought in guests to proclaim "re-building" efforts would make the
market go higher and the small investor should be investing in ..xyz
company because they were going to make tons of money. After two
weeks of hype, money inflows were positive for mutual funds as
tracked by trim tabs research. Those individuals who put money to
work in the market were rewarded this week, just in time for the
quarterly reports and "window dressing." It looks like this
September, the market will close on a positive note, but usually
when that happens, there will be hell to pay in October.


Look at what the Chairman said in his remarks to Business and
Economics meeting, "History cautions that extended periods of low
concern about credit risk have invariably been followed by reversal,
with an attendant fall in the prices of risky assets,


"Such developments apparently reflect not only market dynamics but
also the all-too-evident alternating and infectious bouts of human
euphoria and distress and the instability they engender,"



In a speech to the Mortgage banking assoc, he said,
"The apparent froth in housing markets may have spilled over into
mortgage markets. The dramatic increase in the prevalence of
interest-only loans, as well as the introduction of other, more-
exotic forms of adjustable-rate mortgages, are developments that
bear close scrutiny."

"These products could be cause for some concern both because they
expose borrowers to more interest-rate and house-price risk than the
standard thirty-year, fixed-rate mortgage and because they are seen
as vehicles that enable marginally qualified, highly leveraged
borrowers to purchase homes at inflated prices. In the event of
widespread cooling in house prices, these borrowers, and the
institutions that service them, could be exposed to significant
losses. "

Greenspan is sounding the warning, only you can take the steps to protect your money by using the harmonic stock clock signals. Over the next few weeks, market timing will be critical with you short and long term goals. If you use the Harmonic Stock Clock signals, you may be able to protect your financial wealth when everyone else is losing theirs.



God Bless

Doc
www.doctrader.com

Ps. There is a possibility of a geopolitical event happening
between October 3rd to 15th.