"You know what the news is-- in a minute, you're going to hear the rest of the story"- Paul Harvey

You've heard all of the terms before; support, resistance, "Mr. Market". What does all of this mean and who decides whether a support level is penetrated, or a resistance level now becomes a support level?

It's all very easy if you know who Mr. Market is.

Support and resistance levels are predetermined. They are determined by the infamous Mr. Market who has the ability to control program trading. Massive amounts of stock can be bought or sold by just pushing a button.

Mr. Market is obviously the computer trading programs owned and operated by large institutional investment companies. By simply pushing a button, the can set off a massive selling panic, or create a euphoric buying climate.

So, who are these guys? Who is, Mr. Market?

As thousands of employees continue to get laid off, there are a group of people who run a virtually unregulated and uncontrolled business that allows them to ruin lives and wiped out 401k's with one push of a button.

In uncertain times (like today), big time button pushers can trade the markets, make huge profits, and at the end of the day, the market foes nowhere.

Here is an 2006 article by Brett Steenbarger that explains this type of trading- TraderFeed.

Here is an article about a program trader at the bank Societe Generale in France that caused a large drop in the equity markets, and caused a $7.2 billion loss- CNN.

Here are some of the more influential program traders in the U.S.;

Goldman Sachs & Co.
Merrill Lynch
Credit Suisse Securities, LLC
Barclays Capital, Inc.
Morgan Stanley & Co. Inc.
Deutsche Bank Securities
UBS Securities, LLC
JP Morgan Securities, Inc.
Citigroup Global Markets
RBC Capital Markets Corp
CIBC World Markets Corp
Nomura Securities, Inc.
BNP Paribas Brokerage

One conference call to these firms from the Treasury Department can fix all that ails us. One massive stock market rally that holds its gains, can set off a fireworks display that would make shorts run for cover, and attract cash from the sidelines as well.

In past bear markets, this is how a new bull market phases got started.

Since January of 2008, program have favored the sell button over the buy. This game is getting a little old, and they have gotten the gloom level about as high as it can get. Now that no one believes the stock market or the economy can recover anytime soon, they may be in the mood to change the trend.

Yesterday, Caterpillar (CAT) said it would eliminate 20,000 jobs, Home Depot (HD) said it will shed 7,000 jobs, Texas Instruments said it would cut 3,400 jobs, and Pfizer (PFE) said it will cut its dividend in half.

American Express (AXP) reported a 79% drop in fourth-quarter profits, but this was better than many had expected. Verizon's (VZ) earnings came in as expected.

Timothy Geithner was confirmed and sworn in as Treasury Secretary.

Gold prices fell back under $900 an ounce, while crude-oil futures were trading around $46 a barrel.

For now, staying long, looking for more bargains, and waiting for the big boys to push the "buy" button.