Program Trading
Program trading is the purchase or sale of at least 15 different stocks with a total value of $1 million or more. Some of Wall Streets biggest names are the players in this game and they are among others: Merrill Lynch, Bear Stearns, First Boston, Morgan Stanley, Deutsche Bank Sec, and Nomura. There is a bullish tendency in the market whenever the Buy/Sell Ratio of program traders rises above 1,20 on a 4-week moving average. When program trading becomes excessive and accounts for more than about 25% of total volume on a 4-week moving average, the market became vulnerable in the past.
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Past performance does not guarantee future results!
