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Shorting Stocks On These April POMO Days May Be Hazardous To Your Health

Tyler Durden's picture





 

It's that time of the month again when, with little fanfare, the NY Fed discreetly discloses on which days of the upcoming month shorting is unadvisable, because on the other end of every sale or short will be none other than Kevin Henry & Co., and some $45 billion in buying power-cum-short stop loss triggers (not to mention every possible Citadel HFT algo operating at a less than arm's length from the Liberty 33 trading desk). In short: we get the advance monthly schedule of POMO days. And as everyone knows, one should never fight the Fed (unless, of course, one is the European Central Bank, the People's Bank of China, the Bank of Japan, the Bank of England, the Swiss National Bank, and pretty much every other central bank now that the entire world has devolved to outright currency warfare, but let's ignore that particular weak link in the media's propaganda narrative for the time being). So how does April look? In short: for anyone seeking to short the market in order to take advantage of the inevitable end of the Fed's despotic central-Ponzi planning regime (for reference, please see Bernie Madoff): not good.

 


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Thu, 03/28/2013 - 13:57 | Link to Comment Banksters
Banksters's picture

Turkey shoots are the only trades for me.   Currently, I wait for near 52 week lows on the vix and political turmoil.  Apart from that, fuck shorting ben and his helicopter.

 

There will come a day though...

Thu, 03/28/2013 - 14:01 | Link to Comment Richard Chesler
Richard Chesler's picture

We will not monetize the debt - Ben "Mugabe" Bernanke.

Thu, 03/28/2013 - 14:04 | Link to Comment Say What Again
Say What Again's picture

The ads with the pop-up windows are getting really annoying.

Thu, 03/28/2013 - 14:04 | Link to Comment McMolotov
McMolotov's picture

Adblock.

Thu, 03/28/2013 - 14:07 | Link to Comment Say What Again
Say What Again's picture

won't work because these are not new windows - they are embedded HTML.  You can thank HTML V-X for that

Thu, 03/28/2013 - 14:11 | Link to Comment moonman
moonman's picture

Really?

I installed yesterday and have not seen an ad since

Thu, 03/28/2013 - 14:13 | Link to Comment Say What Again
Say What Again's picture

I'll take another look.

Thu, 03/28/2013 - 14:20 | Link to Comment Number 156
Number 156's picture

If youre not using it alraedy, Try Firefox with Adblocker.

But every time you see an add, you can smile becasue they pay ZH for the hits.

 

Thu, 03/28/2013 - 14:23 | Link to Comment McMolotov
McMolotov's picture

Sometimes I turn off Adblock when I'm on ZH and just click on random ads.

Thu, 03/28/2013 - 14:41 | Link to Comment Stackers
Stackers's picture

Well at least they're being consistent ?

Thu, 03/28/2013 - 14:55 | Link to Comment Say What Again
Say What Again's picture

Installed AdBlocker and it works.

Thu, 03/28/2013 - 18:41 | Link to Comment Jack Napier
Jack Napier's picture

Rocking BFilter with NoScript.

Thu, 03/28/2013 - 14:20 | Link to Comment Divided States ...
Divided States of America's picture

Looks like all the volume today is from the POMO...holy fuck!

Thu, 03/28/2013 - 14:01 | Link to Comment ZippyBananaPants
ZippyBananaPants's picture

It was Zero Hedge, a few years ago, where I first learned what a POMO was!

 

Thank you ZH for that and much more.

Thu, 03/28/2013 - 14:59 | Link to Comment Fidel Sarcastro
Fidel Sarcastro's picture

Thanks Chairman MaoNanke...u really know how to "control" the markets

Thu, 03/28/2013 - 14:01 | Link to Comment Say What Again
Say What Again's picture

So basically, don't short at all in the month of April.

Thu, 03/28/2013 - 14:13 | Link to Comment GolfHatesMe
GolfHatesMe's picture

4/5

4/10

4/16

4/25 are OK

Thu, 03/28/2013 - 19:31 | Link to Comment mkhs
mkhs's picture

When you least expect it, expect it.

Thu, 03/28/2013 - 14:30 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Nope. Just smack on some weekly 3x index eft calls.

Thu, 03/28/2013 - 15:30 | Link to Comment DavidC
DavidC's picture

Much like March...or February...or January...

Although, funnily enough, I don't think there was one today and the US indices...went up.

DavidC

Thu, 03/28/2013 - 18:03 | Link to Comment Solarman
Solarman's picture

Big one today

Thu, 03/28/2013 - 14:13 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The only battle Bernanke & Crew are waging in practical terms is the one to keep the equity markets from cratering.

Bernanke has added 11 trillion in balance sheet, notional wealth (the type that history proves is highly transitory, and subject to rapid vaporization) to the "system," via his "Virtuous Circle" All-Out Monetary Policy Warfare Program, and it's literally the ONE thing he  or his cult of fans point to when asked about his accomplishments as Fed Head.

In other words, there is about 11 trillion USD of balance sheet wealth (most of which is unrealized, by the way) that "Virtuously Circular QE Mechanics" has created since March of 2009, transitory in nature as it is, and which has had the ancillary "benefit" of keeping a huge % of de facto insolvent banks on a ventilator.

If equity markets crater in any significant manner, Ben goes from "hero" (at least in some circles) to "zero" instantly, and the economic & financial follow on consequences will be uglier than what happened in 2008 (since this new house of cards has a far weaker foundation than even that prior house of cards).

Thu, 03/28/2013 - 14:33 | Link to Comment Cdad
Cdad's picture

Yes...and I believe that the market will crater right through the safety net of QE4eva...but since I just got a home equity loan on my house of cards, and Ben Bernanke is buying dead mortgages as if they were gold mines...or unicorns in a world starving for unicorn potroast...I don't care...and really resent you hasslin' my buzz here, brother Truth.

Oh yeah...and to hell with all of you unborn generations, too...and all living generations below me for that matter, including my sons' generation!  Screw 'em all! 

Thu, 03/28/2013 - 14:31 | Link to Comment Manthong
Manthong's picture

If Voltaire was alive today he would probably say it sucks to be right.

Thu, 03/28/2013 - 13:56 | Link to Comment morning_glory
morning_glory's picture

Well as there are only 4 days with no POMO wouldn't it be simpler just to show those?

Thu, 03/28/2013 - 14:02 | Link to Comment McMolotov
McMolotov's picture

This thing's deader than disco. The Fed is basically a doctor trying to keep a dead patient "alive" with shots of adrenaline.

At some point it will become so divorced from reality (if it hasn't already) that Americans will pay as much attention to it as they do to soccer*.

* or "football" for the non-Americanos.

Thu, 03/28/2013 - 15:44 | Link to Comment FL_Conservative
FL_Conservative's picture

Basically, it's weekend at Bernie's.

Thu, 03/28/2013 - 13:56 | Link to Comment Bear
Bear's picture

How long does it take from FED to Market?

Thu, 03/28/2013 - 15:08 | Link to Comment viahj
viahj's picture

about the same as ass to mouth?

Thu, 03/28/2013 - 13:57 | Link to Comment hungarianboy
hungarianboy's picture

Any impact on currencies?

Thu, 03/28/2013 - 13:58 | Link to Comment Moe Hamhead
Moe Hamhead's picture

Shorting stocks when the EU decides to confiscate the cash of foriegn multi-nationals might work out though.  I can them drooling and wringing their hands already.

Thu, 03/28/2013 - 14:07 | Link to Comment Yen Cross
Yen Cross's picture

     That chart should be renamed [European Lending Facility]   *ELF.

         *Not to be confused with the little guy that makes your Christmas presents...

Thu, 03/28/2013 - 14:01 | Link to Comment fonzannoon
fonzannoon's picture

I think that instead of a donation page, ZH should have a pal pal account where anyone (and there are several) who either shorts a stock, buys a short etf, or buys the vix should have to own up and throw $50 into the pay pal account that goes to the donation page.

Thu, 03/28/2013 - 14:04 | Link to Comment Number 156
Number 156's picture

The market will be following the Robert Mugabe principal of 'ctrl-p' market manipulation into the foreseeable future.

Dow 1,000,000,000,000, and bread priced at $500 per slice.

 

Thu, 03/28/2013 - 14:07 | Link to Comment fonzannoon
fonzannoon's picture

If that is the case you better go long some stocks. I don't see how cash or shorting this market will keep up with food/energy prices rising.

I recommend being long stocks and drinking heavily while complaining on here every night and waiting for the collapse. I call that "sharting" the market.

Fri, 03/29/2013 - 12:08 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The main problem, among many, with that thesis, is that (I'll take a silly ass guess here) approximately 90% of equities traded on public exchanges produce and/or sell goods or services that are extremely discretionary, in markets in developed nations (and especially the U.S., U.K., Japan, France, etc.).

In other words, inflation creates demand destruction, especially for "flexible goods & services."

Of course, people have to eat & consume energy, and these prices can rise given the right conditions even while the masses reduce their consumption of food and energy, but assuming that foodstuff commodities and energy will push high enough to offet reduction to allow profitability is a big assumption, as history has often demonstrated.

In short, no one knows what is yet to come, and there is no sure thing now, nor has there ever been one.

These are strange times, we're living in a particularly odd period associated with the Bernank'd Markets, distorted and mangled all to hell, so good luck to anyone and all in what is truly an era of pure, unadulterated gambling (sponsored by central fiat fractional reserve banks).

Thu, 03/28/2013 - 14:18 | Link to Comment Obchelli
Obchelli's picture

Per crumb

Thu, 03/28/2013 - 14:03 | Link to Comment WTF_247
WTF_247's picture

So basically all days in April as well.  At the rate the market is going we will be up 35% for the year if it continues.

Out of 20 trading days, 18 are POMO days. 

Thu, 03/28/2013 - 14:12 | Link to Comment Number 156
Number 156's picture

If we can only be sure. The whole thing is a CONfidence game. Once they have enough investors (muppets) in the market, they will pull liquidity on them.

Wash, rinse, repeat.

Thu, 03/28/2013 - 14:07 | Link to Comment WineSorbet
WineSorbet's picture

So what stocks are in the Fed shopping cart? 

Thu, 03/28/2013 - 14:13 | Link to Comment Number 156
Number 156's picture

Start with GM, then GS, JPM, BofA.. on and on...

Then indirectly, you have things like big Pharma and othert healthcare realated stuff, who will be richly rewarded for their lobbying efforts... 

Thu, 03/28/2013 - 14:15 | Link to Comment SKY85hawk
SKY85hawk's picture

MBS's that are full of CDO garbage.

They're buying bonds that would destroy the Bank's balance sheet if they were marked to market.

I doubt the Banks will tell us where they're putting their fresh new cash until they have to report their holding at the end of next quarter.

 

Thu, 03/28/2013 - 20:13 | Link to Comment Doomer
Doomer's picture

All of them.

Of course, it is the primary dealers who do the buying, after they trade their Treasuries for freshly printed cash from the Fed.

Thu, 03/28/2013 - 14:10 | Link to Comment China Reporter
China Reporter's picture

BTFD again

Wait, there should be no dip in April. Everthing is fixed. This time is different. 

Thu, 03/28/2013 - 14:13 | Link to Comment Yen Cross
Yen Cross's picture

      POMO pix

Thu, 03/28/2013 - 14:24 | Link to Comment fonzannoon
fonzannoon's picture

the most amazing thing is these assholefaces that keep trying to discuss the feds exit strategy. Imagine the market if that calendar was blank.

Thu, 03/28/2013 - 14:29 | Link to Comment lotusblue
lotusblue's picture

April is Special-Bernake Put will double as uplifter extrordiaire for mini "pullback" bounce.

Grand Kazoo now moving the levers.

Thu, 03/28/2013 - 14:41 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Sonofabitch Bernanke, you stupid motherfucker!  How are you ever going to ensure that none of that shit doesn't wind up in the general circulation and go Zimbabwe on us?????  It's not like you're ever going to be able to buy it back in you dumbass bootlicking drag queen whore.  You know that would be an insta-crash-o-matic scenario don't you, you dickhead fuckface scumbag asshole?

Thu, 03/28/2013 - 14:50 | Link to Comment Bear
Bear's picture

BB loves it when you call him that ... kinda like a male version ... "Fifty Shades of Black"

Thu, 03/28/2013 - 20:18 | Link to Comment Doomer
Doomer's picture

Ha ha!  The dirty, unwashed masses getting paid to do actual work, buying stuff made in the USA... what an archaic concept.

Ain't .... gonna ... happen.

 

Thu, 03/28/2013 - 14:44 | Link to Comment tman423
tman423's picture

So basically any day that ends with "y" is pretty much a POMO day.

Thu, 03/28/2013 - 14:53 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

Any reason why they spread this out?  Why not just buy $45 billion on one day a month?

Thu, 03/28/2013 - 15:10 | Link to Comment viahj
viahj's picture

stabiliteeee

Thu, 03/28/2013 - 23:56 | Link to Comment Godisanhftbot
Godisanhftbot's picture

 If they did it all in one day, they'd be bored the rest of the month and probably surf porn.

Thu, 03/28/2013 - 15:08 | Link to Comment orangegeek
orangegeek's picture

Earning reports come out in April for Q1.

 

Wondering if they still matter?

 

Dow is up 11% as of yesterday (that's about 44% annualized).

 

bullandbearmash.com/chart/dow-jones-daily-falls-120-points-minutes-closes-34/

 

And 48M Americans remain on foodstamps.

Thu, 03/28/2013 - 15:18 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Hi....

Just come in for lunch and thought I would stop by and take the opportunity to say Fuck YOU Bernanke,you smelly sack of mouldy shit you.

Have a nice day .

Bye.

Happy Easter ZeroHedgers.

Have a good one.

Thu, 03/28/2013 - 15:33 | Link to Comment carefreemanjoe
carefreemanjoe's picture

When is the FED going to start focussing on individual stocks like Blackberry so the price will keep on going up even though they have bad quarters? Or maybe that is for the Canadian FED to accomplish?

Thu, 03/28/2013 - 15:34 | Link to Comment carefreemanjoe
carefreemanjoe's picture

When is the FED going to start focussing on individual stocks like Blackberry so the price will keep on going up even though they have bad quarters? Or maybe that is for the Canadian FED to accomplish?

Thu, 03/28/2013 - 16:45 | Link to Comment TrustWho
TrustWho's picture

I have a question I hope people will address...

How is the Fed channelling the POMO money into equities and not into commodities? Outside of good farmland, commodity prices have been flat relative to USA equity prices. Past episodes of Fed money printing have had the opposite impact with commodity prices rising.

Fri, 03/29/2013 - 08:35 | Link to Comment madcows
madcows's picture

You're being sarcastic, right?  Oh, wait, you're looking at the government stats.  Real Inflation is holding steady at 14%.

Thu, 03/28/2013 - 22:21 | Link to Comment RottenAlpha
RottenAlpha's picture

You can't artificially keep the dead alive. The FED will fail, and unfortunately the blame will be on capitalism.

It's a lose - lose situation......

Thu, 03/28/2013 - 23:56 | Link to Comment Godisanhftbot
Godisanhftbot's picture

 Sure you mean well, but I just don't get how this pomo money goes right into long stock positions.

 What magik is that?

 PS I think some of it is leaking into Bitcoins.

Fri, 03/29/2013 - 08:31 | Link to Comment madcows
madcows's picture

shorting stocks at any time during these CB liquidity days is dangerous to your financial health.  Look, we all know the stock market is levitating, and will come crashing down.  BUT, Benny has more cash than we do, and he can lift mountains with his magical printing press.... until he can't, and gravity is restored again.... long after you've run out of money.  Short at your own risk.

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