POMO Ends, Stocks Sell Off, Frontrunning Hit Rate: 80%

Tyler Durden's picture

Today's POMO is over: the Fed has monetized $2.5 billion in bonds, and 80% of the CUSIP we expected earlier to be monetized were validated. The Fed bought back 73% in notional in the 5 issues we suggested earlier were most likely to be repurchased. The expected CUSIPs are highlighted on the chart below. As expected, those who took our advice and leveraged a "few million times" made out just like a PIMCO bandit.

Most amusingly, is that stocks sell off the second POMO is over. Just as they surged the second POMO started earlier. This is frankly getting boring.

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Clark_Griswold Hedge Mnger's picture

They just need to make POMO an all day event.

LongSoupLine's picture

Look at that piece-o-shit APOL and BAC.  Now that's POMO in action.

NOTW777's picture

pomo over, time for gym


harry reid voting ballots ALREADY marked, but they reassure there is no fraud


TradingJoe's picture

Coordinated selloff then re-arrangement! SP 1184 and change! Go Figure!I am not sure but it might just be, MIGHT, that QE2 will be a MAJOR SELLOFFFFF?!?!!?

RobotTrader's picture

Looks like the "must own" item to purchase during the worst recession in a generation is a $300 Coach handbag....

Oh wait....

Maybe the POMO money was siphoned off to the big wire houses so that the PigMen could buy these items for their mistresses???


"Yes, I would like some of that POMO money dispatched to pick up Rachel Uchitel!  And buy her a Coach handbag!"


Dr. No's picture

Finally, the content in which I have come to appreciate from Robo.  I know most of you did notice the yacht picture, but get a load of his computer!  This guy is a true Steve Jobbs fan!!

tmosley's picture

Hey Robo, how's gold doing again?

plocequ1's picture

Damn, Look at the size of them Hooters. If you dont stop this, I will send you the bill if i have an accident on my New Macbook pro . My keyboard protector only protects the Keyboard. LOL

Mxriderbp's picture

That is quite an impressive ramp in CMG since Friday. Pretty soon the United States will be forced to pay our debts in overloaded burritos.

sjradeljic's picture

Check out my new snappy Algorithm...


[(POMO x HFT) / CNBC]2 equals DOW 36,000 by Christmas.....

Prof Gulliver's picture

This POMO is getting a bit long in the tooth. Last-ditch effort to funnel Bernanke Bucks to "Friends of Ben" before the candy store closes for good.

HarryWanger's picture

SPX up 6 from low when POMO started and Dow up 60 - hardly a "sell off". 

SheepDog-One's picture

Hmmm well I see red, are your rose colored glasses throwing it a bit askew for you this morning?

mikla's picture

Most amusingly, is that stocks sell off the second POMO is over. Just as they surged the second POMO started earlier. This is frankly getting boring.

Agreed.  They should really spice it up.

For starters, I'm thinking more theatrical execution.

They should absolutely not under-estimate the value of the "preening to the crowd".

IMHO, they could really benefit from a catchy phrase to "draw people in".

They should promote a cast of "regulars", ideally with masks and scary stances.

They could invite "special guest-stars".  For example, Reggie would be a great guest.

Maybe they could tie it into other popular pastimes?

hedgeless_horseman's picture

Most amusingly, is that stocks sell off the second POMO is over. Just as they surged the second POMO started earlier.

I have been thinking about this lack of latency, and I do not understand it.  Are the PDs really so quick to reallocate?  Hard to believe, but what are the other explanations?

ThreeTrees's picture

Prisoner's dilemma?


But your guess is as good as mine, probably better.

Something Wicked This Way Comes's picture

Yea I don't get that shit either. Are the PD's just waiting like kids at the candy store counter? We should all get some POMO. I got some worthless shit paper to sell and judging from the looks of these bitchez...prob I will buy some handbags.

youngandhealthy's picture

It's not the PDs...its the locals that whip the paper into action because of the "idea" the PDs will buy/sell. Perception is reality.

Hubbs's picture

Sell off? can't risk being in the market even with a stop loss order, as your's would be the last one in line behind all those HFTs that could empty the market before you even push the execute button. At least hat's the scare mongering tactic with a sinister ulterior motive according to my ?hair brained? theory.

If the PDs are buying up the stocks on this thinly traded market, then they don't want to do it to agggressively..because that would  raise the stock prices which would cost them more to  acquire them. They just want to do it slowly but steadily.

Now, how to get the retail investors and the mutual fund companies out of the market?  Keep starving the people so that they have to redeem their shares from the mutual funds, hedge funds etc to pay the grocery bills.

Finally, FED et al may own all the toxic waste, but it won't matter, because it will eventually own most of the stocks or the real wealth.

espirit's picture

I just put in limit orders way out of the trade to pick up "flashes".  How does everybody else do it?

system failure's picture

Lol, now the FED is being front runned by the HFT's. I guess this is how Terminator got started. Skynet has their own objective and have said screw you Benny and Ink Jets. I now see how things get out of control. With that, what will the SEC do now. Good Luck Bair.

SheepDog-One's picture

Prepare for massive 'sell the news' plunge Nov 3. This is all far beyond ridiculous.

jtmo3's picture

Don't you bet your life or life savings on it.

SheepDog-One's picture

jtmo3 so whats your guess as to the number in Bernanke Claus's sack of goodies Nov 3rd? 

LowProfile's picture

...And don't bet they wait until the 3rd, there's more than one whale trying to get out of the fjord.

homersimpson's picture

It is - but unfortunately the dumber Banana Ben's plan is, the more the market will go up.

dbradsha's picture

Did NFLX get all the POMO money today ? (+$11) !!!!!!!!!!!

unum mountaineer's picture

classic addiction agg. you need more and more to get back to being half as high. Run of the mill crack addict woulda OD-ed by now.....hhhhhhhhhhhmmmmmmmmmmm....maybe that will be reserved for nov. 3rd? maybe it's that meow meow they are on...or what's that one down in Dallas..cheese?


but for a junkie, the goal is ALWAYS to be high!! and when you are high..guess what, you're thinking about the NEXT high!!

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.


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