High Frequency Trading plan to get the SEC off your back with Bernanke's assistance

The Dow Jones Industrial Average dropped 488 points over two trading days last week. Congress and the SEC were alarmed as the market actually went down after a 78% romp during the prior 12 months. High frequency trading (HFT) represent 60-65% of the daily trading volume and created a phenomenal run however even the machines realized you can’t go straight up forever.

Neither the SEC nor Congress is known for taking preemptive action especially while the equity market is heading higher. No one with regulatory responsibility really cares why the market goes up as a “happy Wall Street” keeps the political contributions rolling in. Let’s not forget that Helicopter Ben will keep interest rates at zero until the Dow Jones Industrial Average reaches 30,000 or he is out of office, whichever occurs first.

Bernanke knows why the market launched during the past year as it is his sanctioned game plan; he started the euphoric romp with “green shoots” and assured Wall Street of access to free money to push the market higher. Ben also wants the country of iPads and American Idol to get a warm fuzzy feeling upon opening their monthly IRA statement and shop even more! He is not endorsing paying one’s mortgage as that is already dead money however he is a fan of spending money on iPhones and tickets to Iron Man.

Ben’s game plan incurred a slight set back last week however he set the “boys and girls” straight over the weekend. As of 11:50 am CDT, the Dow Jones Industrial Average took back 96% of the loss incurred last week and Ben accomplished this in 8 ½ hours of trading.

Another couple of trading days, Congress and the SEC will deem last week an aberration and they will move on to more important matters as HFT will move back down the concern list. The SEC will be back to surfing adult websites and Congress will be back to fund raising activities as November is around the corner.