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Fed Posts Schedule Of Upcoming $32 Billion In POMOs , As It Withdraws Token $260 Million In Liquidity Via Tri-Party Reverse Repo Test
Today, the Fed withdrew a whopping $260 million in liquidity from the market via a Treasury-backed 5 day reverse repo at a 0.20% stop out rate, which is pretty much what banks earn on their excess reserves confirming that this operation was nothing but a travesty. Much more importantly, minutes ago the Fed announced the POMO schedule for the next month: there are 9 liquidity drowning events coming up in the next month. Expect another $32 billion in AMZN, NFLX and AAPL purchasing power to appear magically out of Brian Sack's left pocket. As is now common knowledge shorting on any day, but especially on these days, is suicide. Which is why all natural shorters will continue piling into gold which has become the only way to formally oppose the Fed. Instead of looking at POMO days as stock melt up days, consider them days in which gold will soar even more (due to the recently discussed higher gold melt up beta compared to risk). Trade accordingly.
Note the following dates:
- October 15: 10/31/2014 – 9/30/2016
- October 18: 10/31/2016 – 8/15/2020
- October 20: 1/15/2011 – 2/15/2040
- October 22: 4/15/2013 – 9/30/2014
- October 26: 2/15/2021 – 8/15/2040
- October 28: 15/2012 – 3/31/2013
- November 1: 4/15/2013 – 9/30/2014
- November 4: 10/31/2014 – 9/30/2016
- November 8: 10/31/2016 – 8/15/2020
Across all operations in the schedule listed below, the Desk plans to purchase approximately $32 billion. This is the amount of
principal payments from agency debt and agency MBS expected to be
received between mid-October and mid-November.
And, for those interested, here is today's -0.3% stock performance priced in gold.
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Precious metals handing the markets their respective asses.
To sum up, no one should dare short anything before November 8.
Agreed. ZH hit the nail on the head here and laid out a very nice game plan to follow. Keep going into metals with all this money coming in and, for those who wish to take it further, throw some money into plays like AAPL.
What are you - Steve Jobs loverboy? What's with you an Apple? It's just another ponzi scheme waiting to burst..
Not really. Just ZH makes a valid point regarding AAPL. Buy it on POMO days or the day before. BTW: If AAPL loses 300 within the next half hour - short it into close.
I own Appl and made a shit load of Paper ( No longer called money ). I kiss Steve Jobs hairy ass and i love every minute of it. I throw in a reach around every now and then.
Me too, making a fuck ton of money on aapl. Free money.
As I've stated several times on ZH, if you short apple you will get steam rolled. BB is Apple's friend.
No offense, Harry, but you obsessed with AAPL. You may need to seek some help, pardner.
No more obsessed than ZH. It's mentioned in the post above, is it not? And, since it's the second largest company in the WORLD, you might want to follow it. Because where it goes, the market goes. Notice I did not say economy. Everyone here has varying degrees of the mud that the economy is stuck in. But as for the market, just follow the 2nd largest company in the world.
That's why ZH mentions it so often and why I do as well.
Cut Harry some slack. In this case, he's spot on.
Since AAPL is now makes up 20% of the NASDAQ, it has been and will continue to be quite simple for the Fed, through POMOs to PDs, to levitate the entire market through the purchase of AAPL. Holding AAPL, at least through November 8, is as close to a "no-brainer" in equities as you're going to find.
Nothing in the market today worse than the APPL fanboy club.
Gotdammit guys act like youve done some home work - AAPLs market cap now commands 2/3 of the NAZ100 andQQQQ indexs fuk load of fast hedge fund dough comes into these tech indexes and they hafta buy AAPL -2060 is a huge chart point in the NAZ100 - take that out and its a moon shot LED BY AAPL!
you must ask yourself the question - do you wanna make $$ or whine about all the injustices in life and the irrationality of the markets...
Your question is assuming that betting long on AAPL will continue to make money despite this ponzi scheme otherwise known as the stock market. Going long on AAPL is no different than betting your money with Madoff even after he's told you that he's running a ponzi scheme. You call it whining - I call it being prudent. Betting on AAPL is no different than betting on rising home prices in the swamplands of Florida during the mid 2000s.
You might make $$ for now - but will you be around when you lose w/ AAPL? I haven't met too many house flippers admit to me that they lost big after the housing bubble crashed.
The rational case for going long is gold. Otherwise, everyone else is just putting their chips down on the poker table when the dealer and your opponent can already see your hand with marked cards.
you could short tbt ?
except the USD.
turd, what do you think we will be looking at in terms of price of gold by Nov 8th?
Why stop at No. 8th Turd, hell... NEVER SELL ANYTHING EVER!! Buy! Buy! Buy!!!! Forget valuation, new 52 week highs baby!!! Keep buying!
..i absolutely love this place
you are so gay
stop im blushing
All we need is patience, this is what the endgame looks like.
Don't forget about te leverage either.
And I thought the deadline for POMOs was November 2 (election date). Maybe they want to wait until counting is done.
These POMOs are from QE lite, wait until it is QE lite + QE2, those will be $150B + a month.
Well, shit! Can we at least close down tomorrow before the carnage continues? Robo will love this.
You misspelled "asshole." Twice.
That's the funny.
How come they don't pump Cat and Ford?
Seriously, is it because they actually make shit?
Maybe ZH could start an unofficial new stock index: The Bread and Circuses Index, or the BSX.
Maybe because their valuations are based more on tangible property while high-tech has the magical intellectual property quality which can be modeled to infinite valuation?
Not to mention, Cat and Ford are old school and thus boring. Apple and NetFlix though, dey gots da bling!
I think it's all about building a better mouse-trap.
HONG KONG (Reuters) – Hon Hai, maker of Apple's iPhone, faces new allegations of worker abuse at its sprawling China plants in two reports that claim conditions have not improved despite company promises after a rash of suicides.
One report, based on interviews with over 1,700 workers by 20 universities in Hong Kong, China and Taiwan, criticized Hon Hai for long working hours, a "militaristic" work culture and mass employment of low-wage vocational college students and interns on production lines to cut costs.
snip
Okay, I think I get it. I'd hate Apple for being proprietary crap, but they seem to have no redeeming qualities whatsoever.
RF- I doubt there is much incentive for the US Government to pump Ford since the Gov essentially owns its primary domestic competitors on the taxpayer dime. Cannot have a privately owned company producing profits and good value outshine our public-good welfare project companies. Welcome to the new, kinky 2010 version of moral hazard.
I'm done shorting Nasdaq. Gold or bust now.
Oh I love POMO options days.....
Gold, most certainly is whats for dinner!
Who is Fes? Uncle Fester?
'Fes' as in 'Foreign Exchange Student'... the guy from 'That 70's Show'? He's awesome!
"Fes" Parker....or maybe "fes" up.
Let's get ready to rumble!
http://www.youtube.com/watch?v=4W1Qpw8rSnE&feature=related
you think after todays run up thanks to China, gold will pull back a little tomorrow?
I'm having a hard time cherry picking PM options.....
ZH or anyone: Do you have a running total on POMO's including what's anticipated above? Thanks.
Yea, it's a fuckload. Tomorrow it'll be a bigger fuckload. But, who's counting?
Sir, That is one of the funniest things I have ever read!!
Thank you for the belly laugh.
I needed one as I am still short two stocks that are, and will most likely continue, killing me. But as soon as I surrender, so will everyone else so I am staying put (no pun intended) until the final margin call.
Yea that was funny,
I had to cut a small chunk of my SDS today, as it was getting rediculous and I'd rather realize a little loss than look at that red idiot figure all day. I will regret it tomorrow, but I feel better right now.
Curious to know how big that "fuckload" is so that we can extract observations on QE2 based upon that info.
So does anyone have a running total??
Fuckload is Shitload^2
Google Search Function crashes on terms --- "Fuckload", "Shitload".
Website crash interrupts casting for Slumdog Millionaire 2 as workers scrambled back to support cubicles. Squishee sales plummet at 7-11.
A fuckload is enough to provide every team in the NFL with a brand new Cowboys Stadium. Is that clear? Oh, and a new stadium every month thereafter....before it's leveraged 10X, in which case you could provide every college team with their own Cowboys Stadium also...monthly. But, hey, however it's defined is fine with me.
I made a rough outline from ZH, hat tip to Tyler, http://www.zerohedge.com/article/why-qe2-qe-lite-may-mean-fed-will-purchase-almost-3-trillion-treasurys-and-set-stage-monetar
1.7 trillion in treasuries and agency crap, without the stealth pump added, for QE1. I wanna know what will happen when the Fed hits 35% SOMA in QE2 and there's no more bonds to buy. That might be time to go long AAPL, huh?
Thanks, Dagny! Man, had to suffer through a lot of grief to get a simple question answered.
And this: http://ftalphaville.ft.com/blog/2010/09/27/353576/the-increasing-frequency-of-the-feds-pomos/ Yes, lots of pressure at the Hedge some days. Other days its very gratifying.
I bet the fed will have Congress solve the SOMA problem in the same way they solve their own statutory debt limit limit.
The only question being, just how big will the upward increments be? 1%? or maybe 5%?
$1 quadrillion minus $260 million. We're on our way!
The bigger they are, the harder they fall! That goes for stock markets too!
Have we changed our name to Zimbabwe yet?
.
So, when do the boomers start to pull the triggers for a full-on sell off? Personally, my parents are going to sell off within a day or two as they are approaching parity on their losses (-3% now).
I've posed the question before, but isn't there a larger danger with running the market upward like a fucking freight train on steroids dangerous? It just gives the impression of instability and, moreover, an escape route for the boomers trying to get back to even (and other 'investors', I'm sure).
It'll be interesting to see, when/if we have a "one day reversal" just what it is blamed on.
Boiler, outstanding question and it begs two more. First, can the Fed artificially pump more into the market, at a faster rate, than the boomers trying to break even will take out? And two, where will those Boomers be putting this money? I know the ZH answer would be Gold, but is that the Boomer answer? Because if it is, then look the hell out...
Mine, for example, are going into CDs. No more gambling (exempting the fact that FDIC is broke like a joke, of course). There isn't an appetite for risk with them. I think they have a near barf experience, daily, as they pray they get out before it collapses again.
So they are betting on deflation. CD's, except perhaps very short term, wouldn't be the most obvious choice if they thought inflation was in the cards. Ironically, they are still gambling but now their position is a bet against the men with the printing presses... man, these are strange times for people to try to sort out how to protect themselves.
Well, there's nothing to 'pay off' anymore either. So, pick your poison. What they do want is off the Wall Street thrill ride. They've had enough. I don't think they are the type to put gold bullion in their basement and guard it with a machine gun. I have to assume other boomers are somewhat in the same position and mind set.
I thought CD's were a good idea too.
but I've already got the entire sets of
The Beatles, Simon and Garfunkel, Joni Mitchell, Bob Seger and the Silver Bullet Gang,
Kingston Trio, Bob Dylan, Etta James, Shemikia Copeland, Erika Badu, Ravi Shankar
and even the Estonian male national choir.
Now what?
I thought the future POMOs were to be posted here:
http://www.newyorkfed.org/markets/pomo/display/index.cfm
...but there's nothing there.
Can someone please advise me where the Fed has posted this latest calendar? Thanks!
Anyone? Why doesn't the Fed or it primary thugs use all the money to SHORT gold? Just wondering...
http://www.newyorkfed.org/markets/tot_operation_schedule.html
Tyler left out one of the most important parts of the schedule release:
lolz
Thank you!
Funny, I had to do a double-take when I saw "Outright Treasury Coupon Purchase" in the table above. I initially thought it said, "Outright Theft." Whew, what a relief....
when a market seems so "risk free" - it isn't.
There are two things that can burn the Fed. 1) increase in interest rates (which for now the Fed is able to control) 2) increase in Oil eventually reflecting in gas at the pump of $4 or more (which they cannot control given their current strategy) which will renew the recession
renew the recession or extend the recession? Oh, that's right, it has been declared over.
They can't control the price of oil? Why? Because it is a free market like stocks, treasuries, and gold?
HAHAHAHA! HAHAHAHA! Breath.
HAHAHAHA! HAHAHAHA! Breath.
HAHAHAHA! HAHAHAHA! Breath.
Ok. Sure whatever.
The whole thing reminds me of "A Bug's Life" when at the end the ant stands up to Hopper and says "You're afraid of us ants aren't you?!......and you know it...don't you". Any yes, I have kids and can recite damn near any line from that movie. My point? This blatant attitude of "fuck you - if I want the markets to go up then up they'll go"....has limits.
I am feeling "uncomfortably numb" today as I see what is transpiring.
A little silver helps makes you "comfortably numb".
I am heavy into physical gold but worried Benny is gunning for the "Rudolph von Havenstein" moniker.
http://www.youtube.com/watch?v=0wtiNzci1Wc&feature=related
wow, I'm glad I covered my shorts. this is getting crazy. just stay long gold till you hear the printing presses stop.
just stay long gold till you hear the printing presses stop
Funny, because I just saw them deliver a dozen more.
What did you say is coming magically from Brian's Sack ?
Hopiumfully all wise traders will be front running the crap out of FED's POMO deliveries.
This is one good thing about the Fed. govt. / military, they are good at staying on schedule, and in this case I certainly do appreciate that fact. See you all at 10:15am Friday morning !
With Pomo and OpEx on friday, I hope we see a little correction on thursday. Into next week there's three Pomo's and no slowing the current pace.
The train's picking up speed now...
Time to jump off before it goes over the hill. There aren't any brakes!
The new FOMC language is "we're gonna fly and die mo'fo's, nobody lives forever."
The Markets love it when Ben talks all tough and heroic.
POst MOdern EConomics SUck
Accolades to Ben, Timmy and Co.
The levitation act produced by the combination of now almost daily POMO's, and the anticipation of QE 2.0 is quite remarkable to witness. Dr. Goebbels has nothing on this coterie of peculator's.
This is the end "game" when they go full speed into this much POMO it's DONE! This frenzy will know only one END, THE END! Going long at these levels is more of a suicide then go short or stay short or short some more! Suckers go long from these levels and will get fucked hard and deep! This only to keep up with "da' language"! I don't mind getting hammered, feeling the pain, my only worry though will be when and how to unload my shorts as it will get increasingly hard towards the bottom to find any buyers :-))! Means, close out after 2/3 down the pipe! I don't buy this QE2 hype, even if it really comes, it will be a blow to Benjie's master plan, we may be slow but we ain't dumb!
I bet the higher the SP500 goes the more angry you become. There is only one answer for that. Your not in the market and it kills you to watch it move higher with out you.
OMG! did you look at that schedule?
That's 3 POMOs per week for the next 3 weeks!
Die Ben Die!
The Fed was given more power, and in return they would push the market higher for the Nov election.
POMOs and QE2 are taking the place of fiscal policy - as it looks like monetary policy is taking over fiscal policy - perhaps the FED is anticipating grid lock in DC - POMOs forever, dow 35000 and 10% unemployment, and 10$ gas
youre just too bearish on the future
Question ? I will watch posts for an answer . Have not had time to read all comments yet.
This 260 mln rev repo is supposed just in treasuries (Reuters) http://www.reuters.com/article/idUSNYD00369620101013 , but mentioned is that that can me MBS as well ( Argh!) So then , when dies Fed intend to unload toxic gov't backed MBS into our MM's ( I have one held in Fidelity ) . How much can they repo at one time ? Can they ditch ( pawn off) all the MBS they currently hold into MM's , making them highly risky ? Can they end run around the rules and ruin Grampa and Gramas scant return MM'S . I am thinking of cashing out of any non Credot Union MM'S I have - One is in a 401k which I am very fearful over . Thoughts in detail would be appreciated
That just sounds kinky to me.
Am I seeing things, or is the long bond rolling over to the downside?
This is getting real interesting!
Really this is a great post from an expert and thank you very much for sharing this valuable information with us.
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