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POMO Begins, Stocks Surge

Tyler Durden's picture




 

The 10:15 POMO start moment when the Fed begins to indirectly buy Amazon and Netflix is as stealthy as a fart in an elevator. Nobody even pretends to hide the manipulation. Enjoy the free for all.

 

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Tue, 10/26/2010 - 10:26 | 677517 mjbommar
mjbommar's picture

In case anyone else got sick of the NYFRB historical data interface:

Data: Spreadsheet of All Permanent Open Market Operations (POMO)

Tue, 10/26/2010 - 10:27 | 677520 buzzsaw99
buzzsaw99's picture

get your BAC now or be priced out forever.

Tue, 10/26/2010 - 10:31 | 677532 mabijaoude
mabijaoude's picture

Does the Fed post in advance the dates that they are doing POMO?

I thought it was Monday / Wednesday / Friday..

apparently not.

Tue, 10/26/2010 - 10:36 | 677555 Turd Ferguson
Turd Ferguson's picture

This week its Tuesday and Thursday.

Next week is Monday, Wednesday and Friday.

Nothing scheduled...yet...for the following weeks. QE2 takes over after that?

Tue, 10/26/2010 - 10:40 | 677579 Paper CRUSHer
Paper CRUSHer's picture

Working rotating shifts at Bernanke & Co.

Tue, 10/26/2010 - 10:54 | 677614 bullwhip29
bullwhip29's picture

New sched comes out Nov 10

Not that this matters much. Odd days, even days...as everyone is now trying to get in on the action the day before POMO anyway.

When this starts to fail, we get daily POMO or at least the "hint" that they could execute one at any given moment. I guess the good news is that this means they may be hiring.

 

Tue, 10/26/2010 - 13:23 | 678028 rocker
rocker's picture

Excellent.  Thanks.

Tue, 10/26/2010 - 10:31 | 677534 HelluvaEngineer
HelluvaEngineer's picture

You forgot BIDU.  Also known as the uglier, dumber Google.

Tue, 10/26/2010 - 10:35 | 677549 depression
depression's picture

God Bless Brian Sack !

Tue, 10/26/2010 - 10:36 | 677550 Hero Protagonist
Hero Protagonist's picture

How is the fed indirectly buying equities simply by buying treasuries from primary dealers?  /ducking from insults hurled by asking such an obvious question.

Tue, 10/26/2010 - 15:09 | 677917 Don Smith
Don Smith's picture

HP -

PD's post toxic crap at the discount window and Fed turns on the HP DeskJet and prints some bucks, loaning it to the PD's.

PD's buy treasuries from Treasury with newly minted cash borrowed from the Fed.

Treasury spends new cash on buying votes,er,  entitlements, er, essential government functions. 

Fed turns on the HP DeskJet and prints some bucks. Fed buys treasuries from PD's with newly minted cash.

PD's need someplace to "invest" the now-freed cash, so they buy from the "Approved Churn" list, which apparently is AMZN, AAPL, NFLX, and whatever Robot Trader attaches booby pictures to. 

Billions get added to the markets this way, driving up the price of stocks, commodities, and bonds, and driving down the value of the dollar.  On non-POMO days, the dollar seems to rebound, recapturing some of the POMO gains. Like any other marginal utility curve, POMO is reaching point of diminishing returns. 

Tue, 10/26/2010 - 10:36 | 677553 Paper CRUSHer
Paper CRUSHer's picture

POMO my ass,t'was IBM's $10B buyback that caused the spike higher....said Erin Burnett!

Tue, 10/26/2010 - 10:59 | 677638 Dr. Engali
Dr. Engali's picture

IBM nothing else to invest in...no future growth outlook.....guess we will buy back at the top.

Wed, 10/27/2010 - 00:18 | 679711 Bose Einstein OracIe
Bose Einstein OracIe's picture

Now sorry, but I'll disagree here. IBM has an some future potential that could shatter todays ideas of computing. That's bout all I can say.

Tue, 10/26/2010 - 10:36 | 677560 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

I would like to take a moment and thank Uncle Bennie for improving on my ROI today with regards to the shiney stuff.

Tue, 10/26/2010 - 11:06 | 677658 unum mountaineer
unum mountaineer's picture

yup..just smile and wave boys..just smile and wave.

Tue, 10/26/2010 - 10:48 | 677561 plocequ1
plocequ1's picture

Thank you Lord Bernanke. You are truly the second coming. You have the power to make lame people walk  and blind people see. You offer loaves and fishes and i accept thy mercyful gift. All those who trash thy holy name does not see the light and will walk in darkness. Im not worthy.. Amen

Tue, 10/26/2010 - 11:07 | 677663 unum mountaineer
unum mountaineer's picture

and don't forget the banker's prayer.." thank you for the advance in advance, amen"

Tue, 10/26/2010 - 11:25 | 677713 plocequ1
plocequ1's picture

That sounds like blaspheme. Give me 10 Hale Ben Marys

Tue, 10/26/2010 - 10:37 | 677564 Gimp
Gimp's picture

"Free Market" what a joke, America in decline but hanging on for dear life until the bubble bursts. Government no better than a crooked casino operator with weighted dice.

Tue, 10/26/2010 - 10:40 | 677582 Kreditanstalt
Kreditanstalt's picture

FED buying stocks indirectly?

More like the ADMINISTRATION gave the Fed a strong hint it should pass out the newly-counterfeited "money" to someone likely to buy the right stocks - something that will continue until the November 2 erection.

After that, all bets are off.

Tue, 10/26/2010 - 10:47 | 677588 firstdivision
firstdivision's picture

POMO must be small, the market high did not last too long.  Was this another < $1B? 

<edit> Holy crap, look at NFLX go today.  Hopefully we can hit 100 P/E to make some people feel nostalgic..party like it's 1999 again.</edit>

Tue, 10/26/2010 - 10:50 | 677609 plocequ1
plocequ1's picture

Bring back CMGI and Star Media!!

Tue, 10/26/2010 - 11:04 | 677650 Pondmaster
Pondmaster's picture

11.00 a.m. and up up and away . Holy Hyperbole Batman !

Tue, 10/26/2010 - 11:18 | 677695 SheepDog-One
SheepDog-One's picture

Looks like $2.5 billion to me, markets back to red...wow wasnt that a fun ride, and money well spent!

OK now back to computers chasing around 80 P/E stocks like frat boys chasing a hooker at the kegger.

Tue, 10/26/2010 - 11:04 | 677652 Tsunami Effect
Tsunami Effect's picture
Operation 1 - RESULTS Operation Date:  

10/26/2010

 

Operation Type:  

Outright Coupon Purchase

 

Release Time:  

10:15 AM

 

Close Time:  

11:00 AM

 

Settlement Date:  

10/27/2010

 

Maturity/Call Date Range:

 

  02/15/2021 - 08/15/2040 Total Par Amt Accepted (mlns) : $2,500

 

 

Total Par Amt Submitted (mlns) : $11,305

 

 

Tue, 10/26/2010 - 11:06 | 677661 Kreditanstalt
Kreditanstalt's picture

I see Larry Summers' hand in this.  Maybe just an elliptical reference to the "need to boost stock prices" before November 2.  Maybe a direct remark in the hallway, away from cameras, recorders and lights.  Bernanke got the message, Brian Sack his instructions and the old game of "lipstick on a pig" is off and running.  Daily until November 2...

But none of these characters have the foggiest, faintest fucking clue what this money counterfeiting is doing to the real world. They never go into Dollar Stores or WalMart or Target...never see sloppily-dressed and prematurely-old-looking 40-somethings with their snotty-nosed kids...loading up on Twinkies, donuts and lite beer with food stamps, carting it all home in their 1986 Toyota to watch American Idle together...never see tens of thousands of 20-somethings and 30-somethings living in their parents' basement, jobless & smoking a couple packs a day, with their overweight and college-degree-holding wives keeping the budget together with part-time table waiting...

They never see America becoming a welfare-state Mexico.  Or something out of Soylent Green.   They just read the numbers.  GDP.  Money velocity.  Loan uptake.  "Official" unemployment.

In the REAL world... 

Tue, 10/26/2010 - 12:28 | 677875 ecuador mike
ecuador mike's picture

Great description of Middle Class America unfolding.  However you forgot the unpaid credit card bills crowding the kitchen table, while the cable TV has all the channels and they all stay up-to-date with Farmville.

Tue, 10/26/2010 - 12:34 | 677895 Walter_Sobchak
Walter_Sobchak's picture

I kinda like being 21 and living with my parents and smoking a couple packs a day.  I resemble that remark.

Tue, 10/26/2010 - 11:15 | 677688 SheepDog-One
SheepDog-One's picture

How many billions was this POMO to prop markets barely green momentarily and back to red? Pathetic. They should all be arrested immediately if there was any sanity left in this country.

BTW for all those smokin the Hopium for Bens warehouse stacked to the rafters with Q/E2 trillions on Nov 3, not gonna happen.

Tue, 10/26/2010 - 11:32 | 677737 HarryWanger
HarryWanger's picture

What are you talking about, it spike the Dow 80 points off of its low. Mission accomplished there. Just buy right along and make some money. About as easy as it gets.

Tue, 10/26/2010 - 11:17 | 677693 Central Wanker
Central Wanker's picture

A central banker can stay insane much longer than you can stay solvent.

Tue, 10/26/2010 - 11:35 | 677744 nonclaim
nonclaim's picture

... much longer than the country can stay solvent.

Tue, 10/26/2010 - 12:05 | 677826 BigJim
BigJim's picture

++

Tue, 10/26/2010 - 15:03 | 678302 Grand Supercycle
Grand Supercycle's picture

DOW weekly chart shows the rising wedge contained within the megaphone pattern. This remains a very bearish picture and we should
get a breakout soon.

http://stockmarket618.wordpress.com

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