Timer wiring instructions shown on following page:
http://waterheatertimer.org/GE-timers-and-manuals.html#15071
You connected the white wire and red wire together, and that is why lights are clicking on-off.
I test timers and have done this intentionally during testing.
Follow instructions shown on link above, and GE timer will work correctly.
Same wiring applies to Tork, Swilight, Utilitec, Woods, Leviton, Intermatic non-battery operated timers.
Instructions are different for Aube, Brinks, UPM and Intermatic battery operated
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