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POMO Closes, Fed Buys $6.6 Billion In 5 Year Bonds
The once-delayed POMO has just been completed as Primary Dealers did not have enough clout to delay it for a second time even as the 5 Years was surging. That the most monetized issued was the OTR just issued QJ2 CUSIP should not surprise anyone.
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4.0 is better than infinity
Is it still legal for market to ever go below 10,000 again?
Atomic POMO, bitchez.
is the fix still in ?
"I don't feel like POMOing anymore."
-Krusty
now they can corner the iodine pill market
Fuckers! I hope the Fed and it's clients get what is owed to them.
BTW - just saw Yen w/ a seven handle...look for BOJ intervention...now...and hyperinflation soon.
Anyone seen Nero?
kilroy was here
Hey, 2 weeks is like infinity to this post-modern financial system.
I suggest renaming POMO to POTO -- Open TROUGH Operations.
Any ideas as to what the hell just happened? Obviously for a moment in time someone had catastrophic (6.6 billion USD) in losses. Who was it and how did the losses disappear?
Some day, THEY WILL PAY! Don't know how, but THEY WILL!
In due time, everything reverses to the mean, even a corrupt FEDster and
Telepromptissimo!
This needs to be posted as a ZH headline. This just in from UBS retail research....fucking amazing.
US equity markets: A human, not a market tragedy
• First and foremost, our hearts go out to the Japanese people
and those affected by the horrors of the past week. From a
global markets perspective, however, while risk appetite has
clearly waned, we believe the overall economic impact will be
limited.
• Japan accounts for less than 10% of global GDP and direct S&P
500 earnings exposure to Japan is likely less than 2%. A severe
recession in Japan – which is not our base case – would reduce
our 2011 global GDP growth forecast of 3.8% by just 0.2 - 0.3
percentage points.
•Our 1,350 S&P 500 target is based on the midpoint of our
expected P/E range of 12-14 times our 2012 S&P 500 EPS
estimate of USD 104. With the S&P 500 now trading closer to
the bottom of our valuation range at 12.3 times next year’s
earnings, we recommend buying the current 5% dip.
Global expansion on track
The global economic expansion remains on track. Policy remains supportive
of growth with the Federal Reserve reconfirming yesterday
that it is still committed to completing the previously announced USD
600 billion purchase of treasury securities. While fiscal policy continues
to be debated in Washington, we believe any drag on growth
from potential cuts to government spending will be very modest in
the near term. But, perhaps most importantly, the US labor market
is gathering enough momentum to create a self-sustaining economic
recovery. The unemployment rate has fallen nearly a full percent
over the past three months, from 9.8% to 8.9%. Small business confidence
has improved markedly and expectations for industrial activity
remain strong. While rising oil prices are a concern, we believe
oil prices would have to rise significantly - likely over USD 120- for
a sustained period before we see a meaningful negative impact on
economic growth.
Equity markets look attractive
As a result, we believe the recent dip in US equity markets presents
a buying opportunity. The S&P 500 is now trading at 12.3 times our
2012 earnings estimate, at the low end of our target multiple range of
12-14 times. Our target multiple range is conservative and lower than
the 14.3x average forward P/E multiple for the market over the last 50
years. We believe a lower multiple is appropriate in light of ongoing
consumer deleveraging, high levels of US government debt and aging
US demographics. Also bear in mind that after rising almost 30% from
September 2010 through February, the market was vulnerable to a
sell-off. With leading economic indicators at elevated levels, we had
been anticipating some moderation in the leading indicators, which
could have been a catalyst for a pullback. Instead the events in Japanhave been the catalyst.
Finding opportunities in the sell-off
While we now see increased value in equity markets, several individual
stocks appear well-positioned to provide better-than-average market
returns.
Jeremy Zirin, CFA, strategist, UBS FS
jeremy.zirin@ubs.com, +1 212 713 1219
David Lefkowitz, CFA, strategist, UBS FS
david.lefkowitz@ubs.com, +1 212 713 3739
Joseph Anthony Sawe, strategist, UBS FS
joseph-anthony.sawe@ubs.com, +1 212 713 2812
If sheep don't go to slaughter, they don't make bonus.
Quit thinking with your soul and a conscience. These people would kill their families for the right price.
Now that Bernanke is really getting boxed in, they have to put out more voluminous bullshit in their vain effort to make bonus.
Just wait for another few weeks or so.
Sounds much more professional than:
"Hey, any suckers out there that want NFLX at $215/share - we're still holding a bunch..."
Those with finite money don't like what they see and sell and allow those with infinite money to buy low and sell back to those w/ finite money at highs.
Those w/ infinite money rest assured they can always buy without fear...
Yes, truly, this does look attractive.... what was I thinking by not wanting to buy this...
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=aapl&insttype=&freq=2&show=&time=20
This guy over at another site is calling 79.75. He won't let us post . He is on a mission. There is no intervention coming until the trendline on the 15 year lows get crossed.
Sack and Frost are going to be rich, so will Bernanke.
Broad daylight.
Its the 1933's all over again...just lay over both charts and you'll be running away
BIG TIME! Same shit happened back then too, all the hype at the top then
BIG WOOOOSSSSSSHHHHHH!
And we all know what came then...!
Yes, 2 men with a moustache !
And no, it wasn't the Marx Bros.
Stock sell off accelerating nicely.. that sucking sound is the sound of months of debt money blowing out the side of the ponzi balloon.
Markets Will Crack: Why It Is Not Too Late to Short-http://www.hedgefundlive.com/blog/markets-will-crack-why-it-is-not-too-late-to-short
Seems one more fail to break below 1260 and a third "wickish" pullback and the market is gonna go higher.
It was so at 1040, same at 1175, and now doing the same scenario at 1260...guess all I'm saying is would be good to have the stop loss in place bout now in case recent history repeats itself.
a trillion dollars for the F-35 and the country is broke
http://nakedempire.wordpress.com/2011/03/16/the-f-35-a-weapon-that-costs-more-than-australia/
I had a POMO stick when I was a kid. I enjoyed holding onto it when it went UP & DOWN. I'm now looking to buy a PPT stick so I only go UP!