By now everyone knows that POMO is the daily physical manifestation of the Fed's love for the "1%", and the trillions in underfunded pension and stock-linked entitlements, taking place (almost) every day in the hours between 10:15am and 11:00 am Eastern, when the NY Fed's trading desk injects between $1 and $6 billion in the stock market. What many may not know is that while POMO was the name of the game since 2009 (just think where the S&P would be if the "market" was only open on Thursday, during the 45 minute duration of POMO, and between 3:30 pm and 4:15 pm), it may have finally met its homophonous match, courtesy of Citigroup. So step aside POMO. Presenting.... FOMO, or Fear Of Missing Out.
From Citi's Stephen Antczak:
Fear Of Missing Out outweighs all others
There is a new factor that investors seem to be incredibly wary of, and it has nothing to do with fiscal challenges in Europe, a slow economic backdrop, shareholder-friendly activities, or the potential for rising rates. What investors seem to be most afraid of at this stage is simply missing out – missing out on carry in the best case, and continued tightening in the worst.... This FOMO mentality has become more acute and may outweigh all other worries in the near-term.
And circularly #Reffing! scene.
Golfclap oh Great Chairsatan: you have finally made the momentum chasing herd mentality, driven by the fear of a pink slip, the only game in town. How this has anything but a very happy ending for everyone is simply beyond us.