POMO Arigato - Update

Tyler Durden's picture

UPDATE: POMO ends and... Dow drops 100 points

 

When conspiracy theory becomes conspiracy fact once again...

It seems 15,115 is key for a month-end close in the green for the cash Dow (currently 15,024) - even as IBM drags 30 points out of the Dow today

 

But, but, but correlation does not mean causation

 

Charts: Bloomberg

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digitlman's picture

What a fucking shit show.

cifo's picture

Painful to watch too.

knukles's picture

Hah ha ha ha ha
And you thought that this was manipulation, deceit and invasion of rights (controlling markets)

Hows about this one.  The Consumer Financial Protection Board (Frank-Dodd creation) not only does not protect consumers, but likewise aggregates data upon citizens aka spying...

http://www.usnews.com/news/blogs/washington-whispers/2013/06/27/governme...

protection througn spying
burn the village to save it
war is peace
slavery is freedom
tired of taking it up to the elbow while....

DeadFred's picture

Contractors selected by the CFPB "shall provide a persistent consumer identifier making it possible to follow consumers over time,"

Booz Allen Hamilton??? Just a guess.

RSloane's picture

Sadly you are probably right.

iDealMeat's picture

Use cash..  problem solved..

prains's picture

No _ use your air miles card, nothing gets tracked wtih that, LOL

WTFx10's picture

Another turd polished

putaipan's picture

knuckes- so that is what "the consumer report authorization" form submitted when applying to any job is about....the same form which asks if you've ever been commtitted of a crime. hmmm.

nope-1004's picture

Fed's public PR hit campaign in response to rising rates over the last few weeks has been comical.  Shows rates need to be kept low.

 

Floordawg's picture

You can't polish a turd...

but you can roll it in glitter.

WTFx10's picture

Mythbusters proved YOU can polish a turd.

Geez, just look at the scum that own and control us they are the shiniest turds on the planet!

SheepDog-One's picture

QUICK more gold spraypaint on the turd!

semperfi's picture

Bernanke Put - gauranteed to last a lifetime no matter what the dummass motherfucker says.

DeadFred's picture

So I'm a TBTF bank with treasuries that are getting scarcer by the day and are near their lows of they year so I take my bonds out of their daisy chain of collateral and sell them to the Fed and then use that money to buy into an hour long ramp of a market that can't seem to break above its 50 dma. Time will tell if I'm Master of the Universe or Forrest Gump.

BennyBoy's picture

QE999 and hourly POMO = FINANCIAL NIRVANA!

razorthin's picture

So far just filled the gap down - which would be technically expected even in a normal market.

Dr. Engali's picture

I have an add on my screen telling me gold is goind to $750. More and more "analysts" are throwing out that price recently. It should be intersting to see how gold performs next quater now that the momos have it off their books.

Bay of Pigs's picture

Run Doc! We're all gonna DIE!!!!! LOL.

The "SELL GOLD NOW! hysteria has reached Full Retard status.

semperfi's picture

which means its time to back up the truck

disabledvet's picture

again "Chairman Bernanke has been fired." obviously he's in 'till January...but the "sense of the Senate" (and all Government in the United States) has spoken.

astoriajoe's picture

I think you mean an "ad" on your screen.

To me, an add, is that you're looking to add to your gold stash at $750.

Bam_Man's picture

Yeah, Gold to $750/oz while oil doesn't budge, staying above $100/bbl.

That makes a lot of sense.

NotApplicable's picture

Perhaps $750 is the level that makes the upcoming force majure a "win-win" scenario for the banksters?

Bam_Man's picture

Or maybe $750/oz is the "appropriate price" for the NY Fed to pay for the 380 tons they owe the Germans.

Everybodys All American's picture

Bernanke has destroyed the US Capital Markets. That will be his legacy.

disabledvet's picture

unlike Greenspan who get's an efficiency apartment in Brooklyn with bunch of crack heads Ben Bernanke gets the Freedom Tower.

john39's picture

The market was rigged all along... Just much easier to see now.

CPL's picture

Alternatively he could be the man that made the world rethink the cost of central banking and currency as a tool.  Serendipity is a good thing.  The randomly discovered silver lining.

Viagra is a good example of lemon's into lemonade.  It was originally developed as a heart medication which did an awful job because it got blood flowing improperly.  Researchers did notice however tents being popped because it opens blood vessels around the Corpus Cavernosum which allows for the tent pole to rise to the occasion.

 

NotApplicable's picture

Like we need a bunch of power hungry old men walking around with boners!

CPL's picture

Yet here we are.  

It's a benefit to us all that the only people left with power they can steal power from is each other.  That becomes a lemonparty.org situation. 

semperfi's picture

don't forget to give greenspam some credit

NotApplicable's picture

Bernanke, being a mere puppet, did shit, in all honesty.

Global capital markets were destroyed in the Coup of '13. It just took them a hundred years to make off with all of the capital, undermining our efforts at sustainable standards of living.

corporate slave's picture

C'mon. You can always look for a correlation with something. Just in the middle of the POMO I saw a flying elephant

Jim in MN's picture

That was Dumbo....still think it's a coincidence?

vote_libertarian_party's picture

What exactly is the theory of how it works?

 

The Fed buys bonds from the Primary Dealers.

The PD take that cash and buy stocks for only the time the Fed is buying bonds?

 

Seriously, 'splain it to me?

disabledvet's picture

the banks that aren't bankrupt do this (as you can see by their stock prices there are many like that.) those that are broke (cough, cough...BofA...cough cough) stick it right back to the Fed "and make .75%" and then loan out the difference. the good news is that BofA appears to have "survived May and June."

jldpc's picture

The PD pay cash to the Treasury Dept on purchase - but really there is no "cash" tranasaction, it is all debits/credits on their account at the FED. "Cash" is an outdated term, concept, and notion. "Cash" today means "instant credit." ""Instant credit" means immediately available for a transaction of your choosing. When the PD or other large buyers/holders have excess cash, they deposit it or leave it at the FED and earn overnight interest. These are very large users of cash and credit. They extend credit to 3rd partys or use it themselves in the form of margin accounts, or letters of credit, or credit default swaps. The 3rd partys due the same for the smaller brokers; and all of them extend margin credit to almost everyone who can open their eyes and breath. Lately the money has gone to two places, stocks and mortgages brokers to lend to relaty customers. Most of the latter is bought by FANNIE and FREDIE. (Same game just different balnce sheet.) They also have gigantic in-house brokerage and commercial lending divisions. The latter often finance large corporations daily business and long term contracts. But in the end, it is all debits/credits for each user who has a stated limit on the credit/borrowing side. The size of the outstanding debt of the USGov, no matter who holds it, is dangerous, because it is used as collateral for other debt; hence the pyramid -house of cards worries. In the end it is all just multiple layers of "promises to pay." The leverage is probably close to 50:1. As many fear, it only takes one of these "major" players to default and break a chain. Notice what happens when there is trouble - it is like yelling "fire" in amovie theatre with only one small exit. Most don't survive.

jldpc's picture

The PD pay cash to the Treasury Dept on purchase - but really there is no "cash" tranasaction, it is all debits/credits on their account at the FED. "Cash" is an outdated term, concept, and notion. "Cash" today means "instant credit." ""Instant credit" means immediately available for a transaction of your choosing. When the PD or other large buyers/holders have excess cash, they deposit it or leave it at the FED and earn overnight interest. These are very large users of cash and credit. They extend credit to 3rd partys or use it themselves in the form of margin accounts, or letters of credit, or credit default swaps. The 3rd partys due the same for the smaller brokers; and all of them extend margin credit to almost everyone who can open their eyes and breath. Lately the money has gone to two places, stocks and mortgages brokers to lend to relaty customers. Most of the latter is bought by FANNIE and FREDIE. (Same game just different balnce sheet.) They also have gigantic in-house brokerage and commercial lending divisions. The latter often finance large corporations daily business and long term contracts. But in the end, it is all debits/credits for each user who has a stated limit on the credit/borrowing side. The size of the outstanding debt of the USGov, no matter who holds it, is dangerous, because it is used as collateral for other debt; hence the pyramid -house of cards worries. In the end it is all just multiple layers of "promises to pay." The leverage is probably close to 50:1. As many fear, it only takes one of these "major" players to default and break a chain. Notice what happens when there is trouble - it is like yelling "fire" in amovie theatre with only one small exit. Most don't survive.

The Master's picture

This is the chart CNBS does not want you to see.  Instead, they march out momentum-chasing charlatans who swear there is no correlation between QE and rising equity markets. Fuck 'em.  They deserve every bit of pain that's coming their way.

surferexx's picture

thx for the POMO twitter reminder this morning.  Bought SPY calls right after the tweet!

Temporalist's picture

This is the beginnings of a major equity secular bull market...that is major bullshit piling up for years.

 

Perhaps this is the result of losing all those wrapped and bundled FRNs...that cash had to go somewhere and now we know it was invested "properly" in stocks.

Bangin7GramRocks's picture

Keep waiting for the Washington Generals to win. I understand the game is rigged and am happy to be entertained by the Globetrotters. Quit fighting it! You will disappointed again and again.

disabledvet's picture

there's a lot of truth to that unfortunately. "Give them Greece." maybe that will help.

put_peter's picture

Chigago PMS got some lacquor.