VIX About to Break 20, And... It's POMO Time
The VIX gets ready to break through the 20 resistance level, courtesy of the Federal Reserve.
And speaking of the Fed, Bernanke seems intent on continuing liquidity transfer in perpetuity, and milking marginal volumes higher, as the S&P is set to hit 1,200 today on oddlots. Today's play: circa billion dollar luvin of long-dated treasuries. Presumably, large enough to goose the market higher, but little enough to leave time for one last ditch attempt to bail out the market the next time futures are negative pre-market.