POMO Before And After: A Visual Comparison
If there is one reason why the market has not sold off far more broadly today, it is that traders are currently gearing up in anticipation for the upcoming brand new POMO regime, which will start in earnest tomorrow and will continue for the next 6 months. And for those who would like to see just how much greater of an impact the next 20 trading days' POMO will have compared to the old QE Lite POMO regime, John Lohman has prepared the following two charts. To wit: the median size of any given POMO will be $7 billion, nearly three times as large as the old median of $2.5 billion. As for frequency: in the next 20 days we will see 19 POMOs, virtually one a day (and in some cases two per day), compared to the old POMO incidence which was roughly one every two days. In other words, it certainly appears that the Fed will not allow the GM IPO to be subject to any "market conditions."
Comparison of POMOs in last 20 with next 20 trading days:
And some statistical data on the next $105 billion worth of POMOs.