POMO Impact In Pictures
Submitted by Fidel Sarcastro
POMO has come and gone this Friday. Damn the torpedo's (2 bad reports), full steam ahead!
In this first chart you can literally see the Fed's money flowing into the ES lifting every offer in the book. Whether it is directly from the FRBNY or indirectly from traders because their on to "the Sack"...i meant Brian Sack...is immaterial. It's right there in pretty colors.
This next chart shows when "Backstop-Ben's" POMO ended, which caused the market to crawl into a hole. In the lower pane you can see the volume fall off a cliff.
"Free market" my @$$.