Tomorrow's POMO Priced In?
Stocks close the day in a world of their own, flirting with the breakeven line, even as seemingly nobody wants QE2 anymore, or so they say. The only thing that matters: POMO is tomorrow, and the T+3 sale today means mutual fund re-buying has to be frontrun tomorrow. Not even did all currencies do nothing all day except for the AUDJPY shich was the only reason for the carry-funded surge in ES, but late in the day stocks no longer even cared about that as the HFT momentum brigade took over. With POMO now being front run the day before, the question remains - what will be the buying catalyst tomorrow?
h/t Credit and London Dude Trader