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Do You See What Happens, Larry, When You Don't Get A POMO

Tyler Durden's picture




 

Today was a non-POMO day; a day when the Federal Reserve did not actively inject a couple billion dollars into bank reserves. The last 7 POMO days have been wonderfully green for the cash equity session. Today, no POMO, no MOMO, no new highs. What was different? Europe was closed (so we didn;t get the ubiquitous surge post EU close), we had poor data (bad has been good for weeks now), bonds outperformed (equities haven't cared at all for weeks), and the USD weakness 'should' have been equity positive (if correlations held). But it didn't. Trannies were monkey-hammered with their second-biggest drop in almost six months but the S&P, Dow, and Nasdaq are clung together down around 1% (biggest drop in 2 weeks).  FX markets were 'sporadic' with periods of silence punctuated by chaos (around the FOMC) - JPY's last 5 days now equal the biggest rally in two years as it tested up to 97 and pulled back. The worst first-day-of-the-month since June of last year for stocks seems to signify a Great Un-rotation as Treasuries were well bid (yields down 4-5bps to new 2013 lows).

 

 

It seems pretty clear (especially with volume the last few days) that managers were hedging into the highs as opposed to chasing...

 

Commodities were plundered early on (even though the USD was getting smoked) but bounced back after the European close (UK was open) and extended gains after the Fed...

 

and FX markets reversed their USD plunge on this morning's data and then extended the reversal on the FOMC...

 

and Treasury yields made new 2013 lows at 1.6120%...

 

Energy, Materials, and Homebuilders were the high-beta laggards today. but the Transports were hammered relative to the rest of the market...

 

In the last few minutes, copper collapsed to Lowest Since Oct. 2011...

 

Broadly speaking, risk assets led stocks lower all day, as Capital Context's CONTEXT model shows below...

 

 

Charts: Bloomberg and Capital Context

 

See What Happens...

The Big Lebowski _ This Is What Happens Larry by hulu

 

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Wed, 05/01/2013 - 16:11 | 3519530 redpill
redpill's picture

"Trannies were monkey-hammered"

 

Only on ZH!

Wed, 05/01/2013 - 16:20 | 3519567 James_Cole
James_Cole's picture

Fuck it dude, let's go bowling. 

Wed, 05/01/2013 - 16:21 | 3519581 redpill
redpill's picture

New video representation of the US economy: http://www.liveleak.com/view?i=c32_1367332518

Wed, 05/01/2013 - 16:41 | 3519634 Sweet Chicken
Sweet Chicken's picture

Holy shit and that driver doesn't even make a peep watching that! 

Wed, 05/01/2013 - 16:41 | 3519648 redpill
redpill's picture

Probably too busy crapping his pants

Wed, 05/01/2013 - 16:50 | 3519661 Sweet Chicken
Sweet Chicken's picture

No to derail anything but did you see this one on the list? This can't be real...is it??? http://www.liveleak.com/view?i=de6_1247776535

 

HAHA never mind it's from some Nick Cage movie. lol

Wed, 05/01/2013 - 16:51 | 3519678 redpill
redpill's picture

Take a shot of rail tequila for that one, SC

Wed, 05/01/2013 - 17:01 | 3519707 Sweet Chicken
Sweet Chicken's picture

Will be sure to do so before the deftones concert tonight. I already down voted myself for my gullibility! 

Wed, 05/01/2013 - 19:05 | 3520231 Ness.
Ness.'s picture

My up/down algo down voted you too.. the trend is your friend, right?  I'm -5 bid.

 

Enjoy the show.

Wed, 05/01/2013 - 16:48 | 3519659 Edward Fiatski
Edward Fiatski's picture

"Where's the money, SHITHEAD?"

Wed, 05/01/2013 - 17:56 | 3519933 Schmuck Raker
Schmuck Raker's picture

"The following is intended only for mature audiences"

Wrong crowd...

Wed, 05/01/2013 - 16:20 | 3519575 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

there was a guy at the office that once described the taste of his antibiotics as comparable to that of used monkey rubbers.... I wonder if the trannies have any input

Wed, 05/01/2013 - 17:24 | 3519799 Bastiat
Bastiat's picture

no wonder he was on antibiotics

Wed, 05/01/2013 - 17:13 | 3519758 Goldilocks
Goldilocks's picture

Peter Gabriel - Shock the Monkey (HQ music video)
http://www.youtube.com/watch?v=bo9riZYUpTw (4:04)

Wed, 05/01/2013 - 16:18 | 3519555 fonzannoon
fonzannoon's picture

and today was a good buying entry point?

Wed, 05/01/2013 - 16:30 | 3519570 hedgeless_horseman
hedgeless_horseman's picture

 

 

Yes, the end of today was obviously a very good day to close a levered short position (in THC for example) opened just before the close yesterday.

Wed, 05/01/2013 - 16:30 | 3519600 slightlyskeptical
slightlyskeptical's picture

Markets open weakly tiomorrow and then the POMO will come into play. best to sleep on those puts overnight, but how can you fault anyone for taking a profit on a put while they have them.

Wed, 05/01/2013 - 16:28 | 3519594 Groundhog Day
Groundhog Day's picture

so we will get it all back tomorrow and will get monkey hammered again friday after the unemployment annoumcement and no pomo

Wed, 05/01/2013 - 17:01 | 3519677 hedgeless_horseman
hedgeless_horseman's picture

 

 

The hell if I know.  My crystal ball is only a novelty, but it really ties the room together.  That is why they call it gambling, 'cause it sure isn't investing anymore.

2013 May 18 42.00 Put (@THC   130518P00042000)

Viva Las Vegas!

Wed, 05/01/2013 - 18:02 | 3519951 Panafrican Funk...
Panafrican Funktron Robot's picture

Yes.  This will end up being a "bad" week in order to make the market still appear to be a market.  Then another 10 billion or so in POMO each of the next two weeks, culminating in a 5 billion day going in to opex.  

Wed, 05/01/2013 - 19:37 | 3520364 lotsoffun
lotsoffun's picture

yup.  and i work for a bank and have a 30 day holding period, so i'm just fcked.  it's just hilarious to watch this.  dow down 1% today means it HAS to be up at least 1.25% over the next 2 days, into the weekend, and over the weekend, more printing promised and monday just a total joy fest.

 

Wed, 05/01/2013 - 16:10 | 3519528 useless_fact
useless_fact's picture

The word "lethologica" describes the state of not being able to remember the word you want.

Wed, 05/01/2013 - 16:26 | 3519591 Tenshin Headache
Tenshin Headache's picture

Like I'm going to remember that

Wed, 05/01/2013 - 16:31 | 3519595 catacl1sm
catacl1sm's picture

I only won't be able to remember it when I want to use it.

Wed, 05/01/2013 - 16:32 | 3519607 ParkAveFlasher
ParkAveFlasher's picture

Yeah, that comment was so ... you know ... ah forget it.

Wed, 05/01/2013 - 16:44 | 3519647 McMolotov
McMolotov's picture

Similarly, the word "Lesothologica" describes the state of not being able to remember the names of small African nations.

Wed, 05/01/2013 - 16:49 | 3519670 ParkAveFlasher
ParkAveFlasher's picture

And, Lesbosothologica describes the state of not being able to remember the names of small African nations that resemble Janet Reno.

This is the type of discussion that happens when everyone sits around waiting for Ben to print more.

Wed, 05/01/2013 - 16:14 | 3519529 Overfed
Overfed's picture

Let me be the first to say "Fuck you, Bernanke!" And fuck you too, Geithner.

Oh, and fuck you Krugman. Fuckers.

Wed, 05/01/2013 - 16:13 | 3519531 the not so migh...
the not so mighty maximiza's picture

without a POMO we look like a bunch of HOMO's

Wed, 05/01/2013 - 16:11 | 3519532 WTF_247
WTF_247's picture

I would imagine the algos are already set to levitate overnight.  Should be up 5-7 pts by tomorrow open, gaining a further 5-7 during the sesson to completely wipe any losses for today.  By Friday we will be 1600+.  If we can get some neg news in the mix we may even push decently through 1600.

Wed, 05/01/2013 - 16:14 | 3519533 W T F II
W T F II's picture

Like Sinantra crooned..."The Best Is Yet To Come....."

Wed, 05/01/2013 - 16:13 | 3519543 polo007
polo007's picture

http://www.bloomberg.com/news/2013-05-01/u-s-stock-futures-little-changed-before-fed-statement.html

Record High

The S&P 500 climbed 0.3 percent to a record high of 1,597.57 yesterday as consumer confidence jumped and investors bet central banks around the world will continue their efforts to stimulate the economy. The bull market in U.S. equities has entered its fifth year, surging 134 percent from a 12-year low in 2009 on better-than-estimated corporate earnings and three rounds of bond purchases by the Fed.

Wed, 05/01/2013 - 16:16 | 3519556 NotApplicable
NotApplicable's picture

Electric shocks are stimulative. Should we all be doing those too?

Wed, 05/01/2013 - 16:14 | 3519545 The Dancer
The Dancer's picture

But maybe not for FB....reversal time...ole Warren, is still buying FB?

Wed, 05/01/2013 - 16:17 | 3519546 McMolotov
McMolotov's picture

Where's the fucking POMO, LeBenski?!

Wed, 05/01/2013 - 17:13 | 3519755 Its Only Rock N Roll
Its Only Rock N Roll's picture

If you or any of you POMO's touch my stuff....I'll kill you

Wed, 05/01/2013 - 17:23 | 3519787 Antifederalist
Antifederalist's picture

Lighten up Francis. Best movie line ever.

Wed, 05/01/2013 - 16:15 | 3519548 IdeasRbulletproof
IdeasRbulletproof's picture

I WANT MY QE, AND I WANT IT NOOOOW!!!

Wed, 05/01/2013 - 16:18 | 3519554 DutchR
DutchR's picture

Accounting Tricks, Sleight of hand......

 

Money for nothing and the chicks for free......

 

 

Trick question: Sustainability?

 

 

Ah ff it you only live once........

Wed, 05/01/2013 - 16:16 | 3519560 digalert
digalert's picture

After seeing the May POMO schedule, right here on ZH, I profitably exited some puts today. I believe the market magic carpet rise to the moon will resume tomorrow.

thanks again ZH

Wed, 05/01/2013 - 16:17 | 3519561 SWCroaker
SWCroaker's picture

You didn't get the memo?  The directions were clear, the action was just as predicted.   But you have to be on the inside list for the memo.     Losers.

 

</s>

Wed, 05/01/2013 - 16:17 | 3519566 Colonial Intent
Colonial Intent's picture

Crickett, My first rifle.

Wed, 05/01/2013 - 16:22 | 3519573 youngman
youngman's picture

I got a Twitter feed about Facebook.....WTF..who you gonna buy.....which one is the Fad

Wed, 05/01/2013 - 16:28 | 3519586 yogibear
yogibear's picture

S&P and DOW.

http://www.youtube.com/watch?v=laxyoaHOP1c

Twin Babies Crying

I want more QE!!!!!!

 

 

Wed, 05/01/2013 - 16:31 | 3519587 buzzsaw99
buzzsaw99's picture

You want a toe-mo? I can get you a toe-mo, believe me. There are ways, Dude. You don't wanna know about it, believe me. Hell, I can get you a toe-mo by 3 o'clock this afternoon... with nail polish... [/helicopter ben sobchak]

Wed, 05/01/2013 - 16:58 | 3519700 GolfHatesMe
GolfHatesMe's picture

Who's in charge of scheduling, Birkhalter?

Wed, 05/01/2013 - 17:02 | 3519712 buzzsaw99
buzzsaw99's picture

It don't matter to Jesus. But you're not foolin' me, man. You might fool the fucks in the league office, but you don't fool Jesus.

Wed, 05/01/2013 - 17:21 | 3519779 GolfHatesMe
GolfHatesMe's picture

Liam and me are going to fuck you up. You got a date Wednesday.

Wed, 05/01/2013 - 17:29 | 3519821 Goldilocks
Goldilocks's picture

LL Cool J - Mama Said Knock You Out
http://www.youtube.com/watch?v=vimZj8HW0Kg (4:59)

Wed, 05/01/2013 - 16:29 | 3519588 ebworthen
ebworthen's picture

From $40 Billion per month purchase of Mortgage Backed Securities to $80 Billion per month!

From $45 Billion per month purchase of Treasuries to $90 Billion per month!

More debt and a bigger bubble to cure unemployment!

0.5% on a Ten Year Bond!

We can do it!

Comrades!

Forward!

Wed, 05/01/2013 - 16:39 | 3519622 Tulpa
Tulpa's picture

ALGO HUNGUS: Hello.  Mein dizpatcher seis zere is problem mit der liquidity.

DUDE: Shit, I know that guy.  He's an algo trader!

BENNY: The market server connection is in here.

ALGO HUNGUS: Za, I bring mein toolz. Mein nommen is Algo.  Is hard to verk mit theze uptick rulez.

MAUDE: You can imagine where it goes from there.

DUDE: He provides the liquidity?

MAUDE: Don't be fatuous, Jeffrey.

Wed, 05/01/2013 - 16:47 | 3519660 chdwlch1
chdwlch1's picture

Call the medics, Dude. I'd go myself but I'm pumping blood. Might pass out. Rest easy, good buddy, you're doing fine. We got help choppering in...

Wed, 05/01/2013 - 16:59 | 3519713 Waterfallsparkles
Waterfallsparkles's picture

The Fed keeps feeding the Money created from Debt to the Bankers.  This is transfeering American Wealth to the Bankers.

Americans will eventually have to repay this Debt, plus interest.

This is nothing but outright Theft from the American People. 

Wed, 05/01/2013 - 18:29 | 3520086 mendigo
mendigo's picture

No POMO - No MOMO!
Awesome!

Wed, 05/01/2013 - 19:07 | 3520243 Bastiat
Bastiat's picture

Really seems that they might be at or near the deer-in-the-headlights stage: a token Fed-day knockdown on PMs and wishy-washy minutes; against the background of Bernanke skipping out on Jackson Hole and Europe imploding. 

Wed, 05/01/2013 - 20:41 | 3520587 Gamma735
Gamma735's picture

The Bernanke Put covers everyone but the shorts.  It will work until it doesn't.  The arrogance of the ruling elite should be wreaking all the way to heaven.

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