Zeev's Turnips Patch-No Politics (ZEEV)

[Joe Stocks]

MM, Probably no one here watches the Program Trading numbers closer than I do. Last week's numbers had more to do with the S&P rebalancing of going to market cap of float than some 'signal' that now is the time to 'sell'. Here is a copy of the report.
http://www.nyse.com/pdfs/pt32405.pdf

What is interesting is that the 71.4% number represents a daily avergae of all shares traded on the NYSE. We know that most program trades are heavily weighted towards S&P500 stocks. A 70% reading means that 80 to 85% of all S&P500 component shares traded were in program trades.

The numnber reported next week I am sure will be back down in the 55% range. Don't get me wrong, I think these levels of program trading are absurd. However, I don't think they send a message to 'buy' or 'sell'. In fact, the program traders do better with market that is in a trading range. It's easier for them to manipulate pricing and take money from both sides.