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Editor's Note: U.S. stocks advanced for the fifth day in a row yesterday (Wednesday), with the
Standard & Poor's 500 closing above the 1,200 level for the first time in more than 18 months.
Traders cited growing confidence in the U.S. rebound as a key catalyst. But could stocks be
vulnerable? Contributing Editor Shah Gilani spotlights a risk that traders are overlooking.g|

By Shah Gilani? 


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  high-frequency trading the proliferation of exchange-traded
funds active-arbitrage trading current stock-market volume is far
worse than investors even imagine.


           

            
   
 
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  i recommend that investors
take prudent measures by maintaining stop-loss orders that can protect
them if this low-volume environment happens to result in a steep sell-off. 

[Editor's Note: This essay demonstrates yet again of how investors can use
the powerful financial trends known as "capital waves" to help them shape
their investing strategies. it's a premise that Money Morning Contributing
Editor R. Shah Gilani has shared with readers time and again. And it's an
investing approach that's allowed Gilani to correctly anticipate some of the
biggest events that occurred during the ongoing global financial crisis.

A retired hedge-fund manager and gifted analyst, Gilani regularly takes


readers behind Wall Street's "velvet rope" - and into the world he knows so
well - exposing the pitfalls that can inoculate investors against ruinous losses
even as he highlights profit opportunities that most other experts never even
recognize.

it's no surprise that Gilani's essays have been read by millions.

With his new advisory service - The Capital Wave Forecast - Gilani shows
investors the monster "capital waves" now forming, will demonstrate how to
profit from every one, and will make sure to highlight the market pitfalls that
all too often sweep investors away.

Take a moment to check out Gilani's capital-wave-investing strategy - and


the profit opportunities that he's watching as a result. And take a look at
some of his most-recent essays, which are available free of charge. To read
one of his most-popular essays, please click here.]

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