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Do You See What Happens, Larry, When You Don't Get A POMO
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...
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So, yesterday's POMO day was a good short entry point.
"Trannies were monkey-hammered"
Only on ZH!
Fuck it dude, let's go bowling.
New video representation of the US economy: http://www.liveleak.com/view?i=c32_1367332518
Holy shit and that driver doesn't even make a peep watching that!
Probably too busy crapping his pants
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
Take a shot of rail tequila for that one, SC
Will be sure to do so before the deftones concert tonight. I already down voted myself for my gullibility!
My up/down algo down voted you too.. the trend is your friend, right? I'm -5 bid.
Enjoy the show.
"Where's the money, SHITHEAD?"
"The following is intended only for mature audiences"
Wrong crowd...
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
no wonder he was on antibiotics
Peter Gabriel - Shock the Monkey (HQ music video)
http://www.youtube.com/watch?v=bo9riZYUpTw (4:04)
and today was a good buying entry point?
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.
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.
so we will get it all back tomorrow and will get monkey hammered again friday after the unemployment annoumcement and no pomo
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!
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.
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.
The word "lethologica" describes the state of not being able to remember the word you want.
Like I'm going to remember that
I only won't be able to remember it when I want to use it.
Yeah, that comment was so ... you know ... ah forget it.
Similarly, the word "Lesothologica" describes the state of not being able to remember the names of small African nations.
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.
Let me be the first to say "Fuck you, Bernanke!" And fuck you too, Geithner.
Oh, and fuck you Krugman. Fuckers.
without a POMO we look like a bunch of HOMO's
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.
Like Sinantra crooned..."The Best Is Yet To Come....."
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.
Electric shocks are stimulative. Should we all be doing those too?
But maybe not for FB....reversal time...ole Warren, is still buying FB?
Where's the fucking POMO, LeBenski?!
If you or any of you POMO's touch my stuff....I'll kill you
Lighten up Francis. Best movie line ever.
I WANT MY QE, AND I WANT IT NOOOOW!!!
Accounting Tricks, Sleight of hand......
Money for nothing and the chicks for free......
Trick question: Sustainability?
Ah ff it you only live once........
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
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>
Crickett, My first rifle.
I got a Twitter feed about Facebook.....WTF..who you gonna buy.....which one is the Fad
S&P and DOW.
http://www.youtube.com/watch?v=laxyoaHOP1c
Twin Babies Crying
I want more QE!!!!!!
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]
Who's in charge of scheduling, Birkhalter?
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.
Liam and me are going to fuck you up. You got a date Wednesday.
LL Cool J - Mama Said Knock You Out
http://www.youtube.com/watch?v=vimZj8HW0Kg (4:59)
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!
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.
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...
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.
No POMO - No MOMO!
Awesome!
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.
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.