Why the Senate Wants
to Shut Us Down


Senator Charles Schumer says what we do is unfair --
part of a rigged game. And he's right.
This thing's a money machine.

(But it might not last much longer...)


Dear Reader,

My name is Brian Hunt.

For the past few years, my team and I have been making a killing with the strategy I'm about to show you.

A strategy so simple, so easy, and so rigged in your favor, the government wants to shut it down.

"Our capital market is being compromised by the ability of some insiders to view order information before it is available to the entire market, and... to profit from that information," says Schumer.

And he's right.

Thanks to this "compromised" market, some in our crew have averaged hundreds of dollars a day.

And over the past few months, we've shown countless other S&A readers how to do it too -- with similar results.

Like Dan Tighlman, who wrote us this email...
"I made $8,000 in 24 hours. Sure wish I would have doubled the investment."
And Art Holland...
"Year to date I'm up 700%."
And Kimberly Simms...
"I figure at the end of a year's time, I could produce an additional $60,000 to $75,000."
How long will this game last?

I honestly have no idea.

The Senate Finance Committee just ordered an investigation. But by their own admission, it will be at least months (maybe years) until anything happens -- IF anything happens.

In the meantime, while it's still legal, you have an unbelievable chance to get rich... fast.

0.0001 Seconds

It all takes less than a second.

0.0001 seconds to be precise.

Not even enough time to blink...

But more than enough time to make a few hundred bucks.

"High-frequency trading" is a phrase that may sound familiar to you. Some call it HFT for short.

It's a technique professional traders and big banking houses use to make tons of money... virtually risk-free.

Say someone is willing to sell a stock for $1.00, and someone is willing to buy it for $1.10.

Using HFT, traders who spot this discrepancy quickly buy the stock from the $1.00 seller... and sell it to the $1.10 buyer... for an instant profit of 10%...

Do this a few times a day and the money really adds up.

In fact, this is exactly how Goldman Sachs posted a record profit earlier this year -- even as the stock market was tanking. (From April to June, Goldman traders made money every single trading day but two).

Now, some vote-pandering politicos on Capitol Hill say this is tantamount to insider trading. A rigged game that's making those "in the know" very rich.

And they're absolutely right.

But that's beside the point. Because today, right now, this strategy is entirely legal.
And here's the thing: I bet Senator Schumer wouldn't say a word... if he knew what I know.
Because I know how to get in on it...

And pocket daily, virtually risk-free gains by taking advantage of these exact same moves.

I'm not talking about millions of shares and hundreds of thousands of dollars...

But a few hundred bucks a day is entirely realistic... and easily achievable...

Just ask S&A member Leo Stills:
“I traded in line with your view and scalped about $300. I can see a case for one making at least $300 on a daily basis.”
And here's the thing...

You don't need a supercomputer to do this. You don't need to be a math whiz. And you don't need to sit in front of a screen all day tracking prices, either.

But there are a few things you need to know...

Don't Wait Too Long

First, this strategy will likely change the way you look at investing -- forever.

I don't know about you. But for me, the reason I got into trading in the first place was because I loved the thrill of the game.

I loved putting money on an idea... being right... and being rewarded.

And part of that thrill came from knowing that I could, in fact, be wrong.

Nothing was guaranteed. But that made winning so very sweet.

But this is different.

With this technique, the game's still there, but the winners and losers are pre-determined.

You're either on the right side or you're not. And this technique practically ensures you're on the right side every time.

I'll admit, it's not the most exciting thing. But then, it sure does help our readers make a ton of money.

So if you're looking for a thrill -- if you're looking to plunk down $1,000 on a penny stock with the hopes of turning it into a $100,000 -- this may not be for you.

On the other hand, if you like the idea of collecting modest but constant streams of virtually foolproof money, keep reading...

But don't wait too long to jump in.

Because as I said before -- important point #2 -- is that HFT is now on the government radar...

"Wildly Successful"

Reports The Wall Street Journal:
"Wildly successful in 2008, high-frequency traders are the talk of Wall Street, attracting big bucks and some unwanted attention."
Put another way: The overwhelming fortunes being made by high-frequency traders has been like a gold-plated shotgun blast to the foot.

People are getting a little jealous -- I mean, suspicious.

If everyone's making all this money, there must be something unsavory going on... right?

I mean, just listen to how some S&A readers have done recently:
"In three weeks... I made about 15k."
S&A member, BK

"My first trade resulted in a 155% return in 2 days."
S&A member, FD

"My approximate upside is $20,000 and growing."
S&A member, RF
I'll be the first to admit, it sure is shocking.

And that's nothing compared to what the big banking houses are pulling in...

Like Citadel Investment Group, whose HFT unit averaged $19 million a week last year.

So what I read a little while ago didn't surprise me...

In short, thanks to these sudden windfalls (and Senator Schumer's blubbering), the government has launched an investigation into a sub-niche of HFT...

An ultra-specialized technique known as "flash trading."

Maybe you've heard of it.

The bad news is: Flash trading may ultimately be banned... and HFT in general may be next.

The good news?

Well, the good news is two-fold...

Great News, Actually...

First, flash trading has nothing to do with the HFT strategy I'm going to show you today.

Even if it's banned, it won't matter.

For us, it's a convenient red herring that will keep the Feds busy for a while. But not forever.

I fear this initial investigation could lead to more. And it's possible that soon, HFT in general could be banned as well.
Which is why I suggest you start using this strategy today... and do it as often as possible, while you still can.
To be honest, I think you'll be able to do this for at least a few more years.

When you consider that HFT accounts for up to 70% of the market's daily trades, the SEC is going to find it hard to shut down.

And that brings me to the other good news...

The SEC has no idea what it's doing.

Most people don't know this, but the SEC stopped policing the stock market decades ago.

To this day, the exchanges (like the NYSE and Nasdaq) are responsible for policing themselves.

Yes, there are all kinds of forms to fill out and tracking numbers to register, which the SEC is "supposedly" looking at. But just listen to what former SEC chairman Harvey Pitt has to say about that:

"Although the SEC receives many filings of different sorts, it does very little to collect significant data, analyze it, and then disseminate it."

Remember, this is the same agency that let Madoff run amok for over 20 years.

So while the SEC is now on the case, I'm not too worried. By their own admission, they have yet to even collect any data that would allow them to track these so-called flash orders.

Why?

Because "by many accounts," reports The Wall Street Journal, "the agency is outmatched by the traders."

The government simply can't keep up.

Long story short: You still have time.

So let me show you how you can start using this technique today... to potentially pocket thousands of dollars a week...

Five Times the Rally. Five Times the Gains.

High-frequency trading, at its very core, is simply a way to move stocks faster.

Trades that may have taken minutes or hours to execute a decade ago now take less than a second.

It was our resident trading expert, Jeff Clark, who first tipped us off to this phenomenon... perfected the strategy to exploit it... and has since shown thousands of our readers how to use it.

He likes to call it "hyper trading."

And here's what's great about hyper trading:
Hyper trading creates hyper rallies -- run-ups that can last five times longer than they used to.
And they all start with one simple trigger...

Catch a stock right after this trigger and your investment will multiply by the day.

Just look at this trade some S&A readers got in on recently...

Or this one...


Or this one...


If you had put just a couple thousand dollars in each of these trades, you would have made $570 a day... for 30 days straight.

This is the bedrock component of these HFT systems... and exactly how our HFT strategy works.

All the fancy algorithms, all the easy money, starts with this trigger.

A trigger so simple, you can use it over and over again, day after day, week after week... even on the same stock.

For example, Jeff's been using it for months in his recommendations of SSO -- an ETF that mimics the performance of the S&P 500.

On one trade, his readers could have made 27%... in a little over an hour.

On another, they could have made 36%... in a little over two hours.

If you had traded along with his guidance (which I'll show you how to do), a modest $1,000 investment in each of these could have made you over $600... in three hours.
And he does this nearly every day.
Again, what you're looking for is the beginning of a "hyper trade."

You don't care about what a company's prospects are... or whether their stock is "cheap" or "expensive."
All you have to do is wait for the high-frequency traders to start moving the stock. Then... just hop on board.
These trades can take minutes, like the recommended SSO trades...

Or a few days, like Jeff's recommendation of AEM (75% in 2 days), or WYNN (124% in 14 days), or DIS (55% in 3 days).

And it works both ways -- for stocks going up as well as down. Like this five-day play Jeff recently showed his readers:


Again, I can't stress this enough: You don't need a supercomputer... you don't need to be a math whiz... and you definitely don't have to sit in front of your computer all day to take advantage of this technique.

You don't even need to know anything the stock market, for that matter.

Because Jeff does all the work for you...

Just Check His “Direct Line”

Jeff lives in California, so he's up every weekday by 4:30am Pacific Time to make sure he's ready when the market opens.

And as soon as the bell rings, he's looking for hyper trades.

There are two ways you can follow along...

First, every few hours of the trading day, Jeff posts his up-to-the-minute market insights in a dedicated blog called the "Direct Line."

If you're interested in scalping a few hundred bucks here and there -- on any given day of the week -- you can find everything you need to know right here.

In short, this is where Jeff will give you "bonus" plays, and real-time market predictions... all day long.

In his own career, Jeff's made obscene amounts of money using this very technique -- so much, in fact, that he was able to retire about 30 years early.

And if you decide to join him, you could see similar success...

Just ask S&A member Ralph Bessemi, who wrote us this email:
"I made about $220 on the trade today. I am a fireman. $220 is a good payday."
Or Brian Pecanik:
"Pulled out a 40% gain in a couple hours!"
Or Jack Kern:
"I have made $58,000 using this a few hours to minutes during the day in just a few short months."
But Jeff's work doesn't end there...

As I said before, hyper trades aren't always here and gone in a matter of minutes. Sometimes, they keep going for days... even weeks.

If you're looking for something a little more long term...

If you're looking for ideas that could generate as much as 100%-300% in a week or two...

Jeff writes about them extensively in his Short Report research service.

If you've been with S&A a little while, you may have heard the name before. Jeff's been writing the Short Report regularly for almost five years now.

This service is totally, 100%, a short-term trading research service.

What he's looking for are opportunities exactly like the ones I've been describing in this letter... and nothing else.

This is exactly how Jeff manages his own money -- and exactly how he used to manage his clients money at his own brokerage house before retiring.

In his entire professional career, he's never done anything else.

And it's this kind of discipline, I believe, that's allowed Jeff to record these kind of gains over the past few years:
  • 170% in 18 days on PF Changs

  • 129% in 11 days on Countrywide

  • 109% in 15 days on J&J

  • 111% in 5 days on the Powershares ETF

  • 250% in 14 days on Silver Wheaton.
Last year, during one of the worst bear markets in history, Jeff used these strategies to show his Short Report readers a 1,458% total gain.

Does he claim to be some market savant? Some genius trader?

Absolutely not.

As I said before, everything he does (and we all do) can be boiled down to one simple strategy...

A strategy anyone can use.

He looks for the HFT trigger -- and jumps on it.

Just how accurate is this trigger?

Well, if you're still not convinced that this thing works -- spectacularly -- then maybe this will do it...

Who Says You Can't Time the Market?

Below is the chart of the Nasdaq summation index for the past year...


In hindsight, it's easy to see you should have bought at the end of October, the end of November, the beginning of March, the beginning of July and the beginning of September.

If you had (and sold at the corresponding top), you could have more than quadrupled your money.

But it's impossible to time the market like that...

Right?

Well, take a look at that chart again. This time, I've included marks where Jeff's trigger would have told you when to buy and sell...


A little unbelievable, I know.

But this is only one of thousands of examples.

Just take a look at the S&P index...


Or the NSYE index...


All you have to do is spot the hyper rally about to unfold... and get in before it leaves you in the dust.

This trigger will tell you exactly when.
"I made 5 times my money in 12 days," says S&A member Larry Tripper.

"Six transactions alone account for $40,515 of profits," says S&A member William Gibson.
Want to join them?

Here's how to get started...

This Stock Just Hit the Trigger...

Aside from his Direct Line, Jeff writes a new, in-depth report every week on what investments are about to hit his HFT trigger.

Of course, this is extremely valuable information -- proprietary knowledge that Jeff's built his career on...

So I'm sure you understand that we can't just give it away.

But you can have full access to these reports right away by taking a trial subscription to his Short Report service.
In his latest report, Jeff's detailed an investment that he believes will return 300%... very quickly.
You can read all about it as soon as you sign up.

Then, you'll get another report just like it every Tuesday morning.

Along with Jeff's regular communiqués, he's also written a special report that explains exactly how his HFT trading strategy works.

It's called My Million-Dollar Trading Algorithm.

Don't let the name scare you off. "Algorithm" is just a fancy word for the automatic trading strategy we use.

In this report, you'll learn exactly what factors make up Jeff's HFT trigger... examples of how he's used it in the past... and how you can start using it yourself on every trade you're considering.

The Best Trader in America, Bar None
(a note from Porter Stansberry)

When I first met Jeff back in 2005, he was running his own brokerage firm out in San Francisco.

His clients were some of the city's wealthiest men and women – presidents, CEOs... millionaires many times over.

The smallest amount Jeff would even consider running was $250,000.

You don't build and maintain a client list like this unless you're doing something right. So I knew right away Jeff was very good at what he did.

But nothing could have prepared me for just how good...

I asked him how well he'd done trading options in the past year. Imagine my shock when I discovered:

Average gain: 220%.

His list of winners included 1,007% on Netflix... 343% on Martha Stewart Living... and nearly 1,285% on Strayer Education.

Even more impressive...

He hadn't had a single loss all year.

One of Jeff's former clients told me:

"Mr. Clark has been managing my money since 1998, and he has produced exceptional returns. No matter whether the stock market is moving up or down, he somehow manages to find a strategy that works."

Ever since joining our team, his track record has gotten even more amazing.

Last year alone, he booked a 1,458% total return.

That kind of success turns a modest $10,000 into over $140,000. A $70,000 portfolio become $1 MILLION.

Considering the rest of the market plunged 40%, I'd say that's pretty good.

Today, I'm proud to publish Jeff's research. And I consider him the best trader in the U.S., hands down.
This report is FREE of charge when you take a trial subscription.

So how much does this service cost?

When Jeff was managing money, he charged at least $25,000 a year (plus a cut of the profits) for his services.

He also made his former clients a lot of money. Just listen to this very nice endorsement from Porter...


Now, in the past, we've charged as much as $4,000 a year for Jeff's Short Report publication.

And given the success of this strategy, I think it's worth every penny.

As subscriber Matt Zimmer puts it:
"You should charge $10,000 a year for Jeff's service. I made enough on his last recommendation, 4 days ago, to pay for the next 4 years of service!!"
Today, however, I'd like to offer you a much better deal...

A Deal for New Members

If you sign up through this invitation, I'll give you a full year of Jeff's research -- everything I've mentioned here -- for just $2,800.

That's $1,200 OFF the regular rate.

Immediately, you will receive:
  • 52 weekly reports detailing which investments are hitting Jeff's HFT trigger...


  • Access to Jeff's member's-only “Direct Line,” where you can read his real-time market insights and predictions.


  • My Million-Dollar Trading Algorithm primer, which will show you exactly how Jeff's strategy works... and exactly how you can use it too...
You'll also get the best guarantee I can think of:

Try Jeff's work for the next three months. If he doesn't show you at least one 100% winner during that time, I'll promptly refund every penny you've paid for your trial subscription (minus a 10% processing fee), if you wish to cancel.

In fact, even if he does produce a 100% winner in the next four weeks -- if you're unhappy with the Short Report for any reason whatsoever -- just let me know and I'll send you a refund.

Everything you receive between now and then is yours to keep, my compliments.

To get started right away, Subscribe Now

Sincerely,



Brian Hunt
Editor in Chief, S&A Research
November 2009

P.S. Remember, as I write this, the government has started its investigation of HFT. I think we'll have a good bit of time before anything happens that would compromise our HFT strategy -- but there are no guarantees.

If you're even considering a subscription to the Short Report, I suggest you sign up right away.

To get started now...


Subscribe Now

LEGAL DISCLAIMER: This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. Stansberry & Associates Investment Research expressly forbids its writers from having a financial interest in any security they recommend to our subscribers. And all Stansberry & Associates Investment Research (and affiliated companies), employees, and agents must wait 24 hours after an initial trade recommendation is published on the Internet, or 72 hours after a direct mail publication is sent, before acting on that recommendation.

Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202