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Today's POMO Is Finished: A Meager $2 Billion Allotted To Purchases Of AAPL And AMZN

Tyler Durden's picture





 

Today's POMO has come and gone, the Fed has monetized $2 billion of 3 Year bonds, the money has been funded to the PDs who have already executed their daily purchases of SPY, Amazon and Apple. The ratio of Submitted to Accepted bids was a whopping 10x. Most desired CUSIP was 912828NY2. The market can now resume its decline. Move along.

 


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Wed, 09/22/2010 - 11:14 | Link to Comment orangedrinkandchips
orangedrinkandchips's picture

yes sir-eee.....yet another POMO come and gone...but no QE2...

 

T-bone is right..AMZN, AAPL and the SPY FUTURES...

 

UP UP AND AWAY!!!

 

 

Wed, 09/22/2010 - 11:19 | Link to Comment HarryWanger
HarryWanger's picture

AAPL came off of its highs after the injection. At least heroin lasts a bit longer. Just waiting for the day the iShine comes off the Apple. At such insane weightings in major indices, that'll be all she wrote. Forget about housing, employment, PIIGS, etc.

It all comes down to the silliness of not rebalancing indices when just about every fund in the world has a bit in their portfolio. Imagine that rush for the exit.

Wed, 09/22/2010 - 12:04 | Link to Comment Young
Young's picture

And EVERYONE is long AAPL. Buying long dated OTM puts, there's gonna be a bloodbath once everyone wants out - PPT or no PPT, Apple doesn't have any room for errors...

Wed, 09/22/2010 - 12:25 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

A friend of mine yesterday (thanks JPR!) pointed out that when .gov and/or .fed buys stock, it is (once again) picking winners.  Those companies get some benefit to their stock price and perhaps slightly lower borrowing costs.

Worse and worse every day.

Wed, 09/22/2010 - 12:28 | Link to Comment Prof Gulliver
Prof Gulliver's picture

When you're 20% of the Nasdaq 100, you're officially TBTF.

Wed, 09/22/2010 - 12:24 | Link to Comment Fidel Sarcastro
Fidel Sarcastro's picture

Don't forget to add CAT to the list.

Wed, 09/22/2010 - 12:38 | Link to Comment Mxriderbp
Mxriderbp's picture

You forgot LVS in the list...that stock has taken off like a rocket since the flash crash and is up on down days (like today).

Wed, 09/22/2010 - 11:18 | Link to Comment plocequ1
plocequ1's picture

2 Billion Alice? Mere bag of shells.

Wed, 09/22/2010 - 11:20 | Link to Comment frankTHE COIN
frankTHE COIN's picture

The Full Frontal Assault is over for the time being.

Wed, 09/22/2010 - 11:22 | Link to Comment MarketTruth
MarketTruth's picture

What? Just $2,000,000,000? Ameteur punters those Feds! ;)

Wed, 09/22/2010 - 11:22 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

What happened to the POMO mojo?

Wed, 09/22/2010 - 11:25 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Just enough POMO to keep the Delirium Tremens at bay until Friday.

Maybe! Maybe not. We shall see.

http://en.wikipedia.org/wiki/Delirium_tremens

Wed, 09/22/2010 - 14:42 | Link to Comment bobby02
bobby02's picture

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

Cognitive Dissonance 2.0?

Wed, 09/22/2010 - 19:28 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Where in my comment do I say the POMO proceeds are being used on equities?

Wed, 09/22/2010 - 11:25 | Link to Comment Boilermaker
Boilermaker's picture

Well, damn it, if there is one thing that will save this economy is a website that produces absolutely NOTHING and an electronics producer with factories in China.

Brilliant.

Wed, 09/22/2010 - 11:27 | Link to Comment Battleaxe
Battleaxe's picture
Herb Allison, head of government bailout program, announces resignation

He said that the bailout fund, known as the Troubled Asset Relief Program, had proven to be remarkably successful in achieving its goal of stabilizing the nation's financial system and laying the groundwork for an economic recovery.

WASHINGTON (AP) -- Herb Allison, the head of the government's $700 billion financial bailout program, announced on Wednesday that he would resign.

Allison said in a letter to his colleagues in the Treasury Department's Office of Financial Stability that they had accomplished a great deal.

Wed, 09/22/2010 - 11:28 | Link to Comment Boilermaker
Boilermaker's picture

He'll enjoy his kickbacks on the beaches of Aruba.  I'm sure they have CNN down there so he can watch the chaos from his guarded and gated community.

Wed, 09/22/2010 - 11:38 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

Seriously.  Is anyone watching these guys to make sure they don't flee in the night?

Wed, 09/22/2010 - 11:49 | Link to Comment Boilermaker
Boilermaker's picture

Nope. 

Wed, 09/22/2010 - 12:38 | Link to Comment MarketTruth
MarketTruth's picture

Nope and even the BUSH family has a nice compound and spread of land in an non-extradition country. These guys think ahead.

Wed, 09/22/2010 - 11:29 | Link to Comment bull-market_3.0
bull-market_3.0's picture

wtf!!! i was expecting a ramp up on all securities. damn the fed is unreliable in every way possible, even predicting on their unreliability is unreliable...

Wed, 09/22/2010 - 11:29 | Link to Comment HarryWanger
HarryWanger's picture

Existing Home Sales tomorrow have been ratcheted down to very low expectations. The number will more than likely either come in right there or BTE.

Claims are expected around 450k again. Probably come in close to that ignoring an upward revision from the previous week.

Sound familiar? Yep, If SPX closes above 1130, tomorrow has the potential to rocket higher even if Iran lights a fire on the fuse of their shiny new nuclear missile and points it right at Israel, it won't matter. 

They're finally learning to bring expectations lower so the shitty numbers won't look so bad.

Wed, 09/22/2010 - 11:35 | Link to Comment barkingbill
barkingbill's picture

iran is not going to attack israel. this is just fear mongering to get us more involved over there...

Wed, 09/22/2010 - 11:58 | Link to Comment HarryWanger
HarryWanger's picture

I know, I was just using it for the sake of absurdity.

Wed, 09/22/2010 - 11:33 | Link to Comment hedgeless_horseman
Wed, 09/22/2010 - 11:31 | Link to Comment orangedrinkandchips
orangedrinkandchips's picture

keep AMZN up god dammit...tell the fucks at the PDs to keep some powder dry for that last 3 seconds of the day pumping it 2-3 handles easily....

 

now!

Wed, 09/22/2010 - 11:34 | Link to Comment Igiveup
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.

Wed, 09/22/2010 - 11:49 | Link to Comment Bold Eagle
Bold Eagle's picture

Fed creates money from air and uses them to buy bonds from banks. Banks get extra cash to buy stocks (stupid, imho, I would buy gold instead).

Wed, 09/22/2010 - 13:29 | Link to Comment hollywould
hollywould's picture

pls help me understand:  instead of retiring funds from debt that has been refinanced or matured, the fed announced last meeting it is now keeping steady the current $2.05T securities portfolio (mbs, agencyt, treasury) by reinvesting the prepayments into treasuries... where i am confused is the in the thinkning that the banks take the cash received for treasuries and buy stocks.  (serious question, please; excuse my naivety). 

Wed, 09/22/2010 - 11:35 | Link to Comment frankTHE COIN
frankTHE COIN's picture

Hopefully this will blow up on them like back in 2000. Normally when the S&P switches stocks in the S&P it was around 25-40. But once they saw the bubble was bursting they replaced a record number of the strongest " New Economy" nasdaq stocks into the s&p. The manipulation blew up on them because a lot of them were at the peak of insane overvaluation. Some trading at over 200 x earnings. They promptly reverted to the mean.

Wed, 09/22/2010 - 11:36 | Link to Comment 99er
99er's picture

Chart: SPX

Well...it was a good try, Ben.

http://99ercharts.blogspot.com/2010/09/spx_2146.html

Wed, 09/22/2010 - 11:36 | Link to Comment RobotTrader
RobotTrader's picture

Heh, the Perpetual Motion Machine continues unabated.

POMO proceeds are being recycled right back into TIPS to get the "Wash, Rinse, Repeat" cycle cranked up again.

Wed, 09/22/2010 - 12:03 | Link to Comment scratch_and_sniff
scratch_and_sniff's picture

Robo how do post those pictures? ...i want to post one of a big wet twat?

Wed, 09/22/2010 - 11:41 | Link to Comment RobotTrader
RobotTrader's picture

Since interest rates and oil prices are both crashing...

Must be a re-emergence in MBS trading again.

Looks like Eddie Lampert's stock is getting ramped up in anticipation of the next MBS trading boom.  Never mind about Sears and Kmart, those are just fronts....

LOL....

Wed, 09/22/2010 - 11:56 | Link to Comment Tyler Durden
Tyler Durden's picture

LOL indeed

Wed, 09/22/2010 - 12:00 | Link to Comment williambanzai7
Wed, 09/22/2010 - 12:07 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Medic....er....JPM....er....Goldman......um......FED....er...whoever you are.

I need a refill.......NOW!

Very nice WB7. Some day I would like to take a stroll through that brain of yours. I'm sure I would find all kinds of interesting stuff. :>)

Wed, 09/22/2010 - 12:10 | Link to Comment scratch_and_sniff
scratch_and_sniff's picture

Where did he get the empty box more to the point.

Wed, 09/22/2010 - 12:42 | Link to Comment williambanzai7
williambanzai7's picture

I am sure its thoroughly described in the Diagnostic and Statistical Manual of Citizen Agitation.

 

Wed, 09/22/2010 - 13:07 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Yup, you're correct. I just pulled out my DSM and found WB7. Thanks for the walk through your park. :>)

http://en.wikipedia.org/wiki/Diagnostic_and_Statistical_Manual_of_Mental_Disorders

Wed, 09/22/2010 - 12:12 | Link to Comment Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

Wake up, wake up, wake up it's the 1st of the month
So get up, get up, get up to cash your checks and come on

Hey my n1gga we havin' a wonderful day and I won't fuck with me. Why?
'Cause it's the 1st of the month and now we smokin', chokin', rollin' blunts
And sippin' on 40 ounces thuggin' come come we got the blessed rum
From jumpin' all nights we high
Hit up the block to where? East 99
I get with my n1gga to get me some yayo
Double up n1gga what you need?
We got weed to get P.O.Ded
Fiend for the green leaves
Give it up it's the foe sure you better lay low
Cause the po-po creep when they roll slow
If you can't get away better toss that yayo
Keep your bankroll
Yeah we havin' a celebration, I love to stay high
And you better believe when it's time to grind
I'm down for mine crime after crime
Fin to creep to the pad cause mom's got grub on the grill
If we got the food, you know it's the 1st of the month
and my n1gga we chills foe real

Wed, 09/22/2010 - 12:54 | Link to Comment Hero Protagonist
Hero Protagonist's picture

Why are some of the amounts $0, does that just mean they decided not to purchase?

Wed, 09/22/2010 - 13:29 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

The market is looking forward.

Wed, 09/22/2010 - 13:45 | Link to Comment GoingLoonie
GoingLoonie's picture

This is the problem everywhere, the government cronies pick winners and losers at all levels of government.  Who are the winners?  Big Business that make their donations.  When in school we called that Fascism.

Wed, 09/22/2010 - 14:30 | Link to Comment hollywould
hollywould's picture

help me understand:  instead of retiring funds from debt that has been refinanced or matured, the fed announced last meeting it is now keeping steady the current $2.05T securities portfolio (mbs, agencyt, treasury) by reinvesting the prepayments into treasuries... where i am confused is the in the thinkning that the banks (primary dealers?) take the cash received for treasuries and buy stocks.  (serious question, please; excuse my naivety). i thought it just sat in reserves getting 25 bps, or went into other "relatively" safe yielding FI securities...

Wed, 09/22/2010 - 14:59 | Link to Comment hollywould
hollywould's picture

????? 

 

Wed, 09/22/2010 - 15:11 | Link to Comment scratch_and_sniff
scratch_and_sniff's picture

"where i am confused is the in the thinkning that the banks (primary dealers?) take the cash received for treasuries and buy stocks."

What is there to be confused about? ...Other than it dosent make any sense.

Wed, 09/22/2010 - 15:14 | Link to Comment 99er
99er's picture

Chart: SI

Silver futures may have started a down channel.

http://99ercharts.blogspot.com/2010/09/si_7972.html

Wed, 09/22/2010 - 15:42 | Link to Comment sbenard
sbenard's picture

What a disappointment! A paltry $2 billion taxpayer dollars flushed down the toilet?

Oh, that's right! They were CHINA's dollars because we're borrowing them!

The dollars of the taxpayers, by the time we pay China back, will be many, many BILLIONS more!

Wed, 09/22/2010 - 23:44 | Link to Comment PiratePiggy
PiratePiggy's picture

Pirate Piggy observes:  Tim Geithner and Ben Bernake - addicted two snorting co-Keynesians

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CL1's picture

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