Today's POMO Begins: The Fed, Via The PDs, Prepares To Inject Between $3 And $5 Billion Into High Beta Stocks

Tyler Durden's picture

All those who were observing the pounding in futures overnight, and are stunned once again by how stocks can be higher with horrendous data out of the FHFA on the home price index which plunged to -0.5% on expectations of -0.2% and a prior print of 0.3%, need look no further than the FRBNY, where Brian Sack is warming up the Bloomberg Terminals. Up on deck: anywhere between $3 and $5 billion in repurchases of bonds maturing between 3/15/2013 – 8/31/2014, with the money immediately going to the Primary Dealers, who bid up Amazon, Apple, etc, etc, perpetuating the myth that the American economy is not dead. Expect a run up in stocks into the 11 AM close of today's POMO.


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EscapeKey's picture

Ah, I was wondering why the markets were up. But then I thought "it's Wednesday".

SpeakerFTD's picture

I think the game is up.  By my count, yesterday was the top of the rally, and every POMO play from here on out will be slope of hope material.   See you at Euro parity and S&P 800.


HarryWanger's picture

AAPL at 287. Market ain't going nowhere while this behemoth keeps rising.

SpeakerFTD's picture

Harry, if I was allowed to buy Z 200 puts on AAPL, I would be waving them in with both hands

RockyRacoon's picture

Stop pumping AAPL.   We are perfectly capable of reading charts, news, and spin without your help.

Ragnarok's picture

SLV and GLD are lagging the futures, have people finally realized the difference?

sethco's picture

Quixotic ramp at the open today

Battleaxe's picture

Jocko Pomo has awakened!!

scratch_and_sniff's picture

I was kind of thinking that since the last pump was so large they might do a small one today; maybe they knew what the reaction was going to be after last nights statement(i.e sell everything and buy it back with the feds money at a lower price) so they put a few handles on the market before the selloff . Everyone will be in the market today, and if they are going to sell until the stimulus release, it might not be worth the feds while today.

Pillage's picture

Four symbols sum it up........AAPL

Dagny Taggart's picture

AAPL - you mean the Wanger index? Nope, not now 'cause both AAPL and my shorts are up. It's like someone's Sack has whiskey dick...

Sancho Ponzi's picture

OT: KRE is getting slaughtered today. 

HelluvaEngineer's picture

banks started rolling over yesterday

Tense INDIAN's picture

well they have been POMOing this market for this long ....i think there is no reason they will let this fall atleast till the elections..

Panafrican Funktron Robot's picture

Early October is going to be the crash.  Remember, neither the Dems or Repubs are in control of this.  A Repub landslide = governmental gridlock = mission accomplished.  In other words, if you think the market is engineered, why would the engineer it so that the Dems would retain a congressional majority?

old_turk's picture

Stick SAVE!!!!

Although I don't think all that liquidity is moving to equities ... I have pretty good evidence (ie price run-ups) that commodities will be the beneficiary of all this liquidity.

Not that anyone will have any money (yeah, it's TP, but until bread is priced in AU milligrams, it's all you got) to buy the said commodities with.

Expect continuing records in the SNAP program (that's the new name for food stamps) gentlefolk, unemployment rates to bounce and more BS from the pols about what they are going to do to 'help'.

Ugly isn't descriptive enough, fulgy doesn't do it justice ... FUBAR is close.

BTW, O/T but Summers is quitting ... his work is done, now is time for him to cash out.

The rats are leaving the ship, were they pushed or did they jump?

ZackAttack's picture

He's just stepping down so he can spend more quality time with his money.

Dagny Taggart's picture

Maybe the equities can't get any higher because POMO was just a gateway drug. It craves QE2. Why screw around with billions when you can pump a few trillion?

chinaguy's picture

No POMO bounce today! I got out w/ my AM position of DDM @ neutral!

Id fight Gandhi's picture

Jeffries ain't good today for fins.
Adobe got crushed,

I think this dog is rolling over today, gold will run, but not breaking 1300 today

RobotTrader's picture

CarMax headed back up to 52-week highs.

With gasoline prices imploding almost weekly here in Los Angeles, no wonder car sales are booming.

Cognitive Dissonance's picture

With gasoline prices imploding almost weekly here in Los Angeles, no wonder car sales are booming.

So RobotTrader is an LA product? Interesting. Explains the push up bra and the empty head. :>)

Hero Protagonist's picture

How can you determine the principle amount of each CUSIP ID?

Jason T's picture

AMZN pump is pathetic.

gigeze787's picture

POMO Pop is all about the Nov Congressional elections. (So is dumping Wall Street pimp Summers).

Obama won in 2008 after the unwashed proletariat received their Q3 301K/IRA-lite statements (later to be revised to 201K statements after Oct freefall.)

WH/Fed/Treas objective is the Sep 30 close...which will determine value of 401K/IRA statements received by voters in mid-Oct. POMO levitation of SPX > 1100 will continue for at least 6 more trading days.


"...Many millions of American households are gingerly opening envelopes containing reports of the third-quarter losses in their 401(k) and other retirement accounts -- telling each household its portion of the nearly $2 trillion that Americans' accounts have recently shed. In this context, the McCain-Palin campaign's attempt to get Americans to focus on Obama's Chicago associations seem surreal..."

TradingJoe's picture

Well folks, POMO, it seems, won't help today, maybe Friday?! @ RobotTrader, trying to pump up your own holdings, "darling"?

PlausibleDenial's picture

Damn, everytime I think I have it figured out, it just doesn't work.  POMO, MOMO, or MOJO. I just dontno....  And, the market is suppose to go up?

EscapeKey's picture

Headline on Marketwatch:


Home prices at a 6-year nadir.

And yet, the markets go up. And that's because of "great fundamentals", "good news", "low P/E-ratios", "worse than expected was priced in" and other bullshit factors.


bobby02's picture

Why do you take it as the gospel that POMO proceeds are spent on equities?

PlausibleDenial's picture

Because Tyler said so..... :)

Threeggg's picture

It's Hush - Hush

The EIA inventories and analysts were off buy only 200% this morning

I am telling you the wheels are starting to come off this whole financial shit storm.

Prepare !

Analysts polled by Platts expected a decline of 1.5 million barrels for the week. Gasoline stocks rose 1.6 million barrels, whereas analysts had seen it unchanged. 

Huh ?

Oil about to implode !


Igiveup's picture

Would one of you please take the time to explain to those of us who are not priviy to all of the doings you guys evaluate with your comments everyday how exactly the POMO is creating money?  As I understand it, the POMO is purchasing bonds for cash.  The cash comes from selling treasuries.  If the bonds are retired and the treasuries are issued, how does that increase the supply of money in the system?  And how does that money make it from the Fed to the equities market?  Read you guys every day but it's like hearing an inside joke sometimes.  You all know what's going on so you take the short cut in the explanation and the rest of us don't get it.

Battleaxe's picture

Brian Sack's mom (Nutella) must be proud!

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