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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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Tue, 10/26/2010 - 11:34 | 677739 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

They just need to make POMO an all day event.

Tue, 10/26/2010 - 11:34 | 677741 LongSoupLine
LongSoupLine's picture

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

Tue, 10/26/2010 - 11:36 | 677745 NOTW777
NOTW777's picture

pomo over, time for gym

 

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

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Tue, 10/26/2010 - 11:37 | 677750 TradingJoe
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?!?!!?

Tue, 10/26/2010 - 11:40 | 677760 RobotTrader
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!"

 

Tue, 10/26/2010 - 11:53 | 677797 Dr. No
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!!

Tue, 10/26/2010 - 12:04 | 677824 tmosley
tmosley's picture

Hey Robo, how's gold doing again?

Tue, 10/26/2010 - 12:09 | 677828 plocequ1
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

Tue, 10/26/2010 - 11:45 | 677770 Mxriderbp
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.

Tue, 10/26/2010 - 11:45 | 677772 sjradeljic
sjradeljic's picture

Check out my new snappy Algorithm...

 

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

Tue, 10/26/2010 - 11:46 | 677775 Prof Gulliver
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.

Tue, 10/26/2010 - 11:47 | 677776 HarryWanger
HarryWanger's picture

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

Tue, 10/26/2010 - 12:40 | 677913 SheepDog-One
SheepDog-One's picture

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

Tue, 10/26/2010 - 11:50 | 677788 mikla
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?

Tue, 10/26/2010 - 11:57 | 677812 hedgeless_horseman
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?

Tue, 10/26/2010 - 15:30 | 678413 ThreeTrees
ThreeTrees's picture

Prisoner's dilemma?

 

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

Tue, 10/26/2010 - 12:05 | 677829 Something Wicke...
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.

Tue, 10/26/2010 - 15:30 | 678414 youngandhealthy
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.

Tue, 10/26/2010 - 12:18 | 677851 Hubbs
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.

Tue, 10/26/2010 - 13:29 | 678050 espirit
espirit's picture

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

Tue, 10/26/2010 - 12:42 | 677916 system failure
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.

Tue, 10/26/2010 - 12:43 | 677920 SheepDog-One
SheepDog-One's picture

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

Tue, 10/26/2010 - 12:57 | 677964 jtmo3
jtmo3's picture

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

Tue, 10/26/2010 - 13:39 | 678070 SheepDog-One
SheepDog-One's picture

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

Tue, 10/26/2010 - 13:45 | 678087 LowProfile
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.

Tue, 10/26/2010 - 14:26 | 678191 homersimpson
homersimpson's picture

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

Tue, 10/26/2010 - 13:12 | 677999 dbradsha
dbradsha's picture

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

Tue, 10/26/2010 - 13:49 | 678093 unum mountaineer
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!!

Tue, 10/26/2010 - 14:54 | 678281 web bot
web bot's picture

removed

Tue, 10/26/2010 - 15:00 | 678293 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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Thu, 12/09/2010 - 10:35 | 792239 senthil456
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