Whatever You Do, Don't Short Stocks On These Three Days In December

Tyler Durden's picture

Regular readers know that at the end of every month we look at the next month's POMO schedule, and urgently advise against shorting stocks on POMO days. That in the New Normal POMO days are pretty much every single day, may have something to do with why the S&P is set for a +30% close in 2013. However, in December the Fed has something very special served up. In addition to the usual $45 billion in total monthly wealth effect injections (which happen to quietly end up directly in Singapore private wealth offshore accounts), in the next month, Ben Bernanke's parting gift to the 0.1% will be not one... not two... but a whopping three days with double POMOs: December 3, December 9 and, drumroll, December 19, aka the day after the final 2-day FOMC meeting of 2013, when Kevin Henry and his peers will monetize up to a whopping $7.5 billion in one day!

Is it a harbinger that something bad may take place the day before? We doubt it: this is merely the Fed doing everything it can in its power to make sure Santa Claus appears right on schedule for the billionaires of the world just so their spending habits are not impaired.

We, however, are positive that anyone caught shorting stocks on pretty much any day in December, but especially those three, will certainly not feel the benefits of whatever wealth the middle class has left being funneled into the bank accounts of the uberwealthy, as Ben Bernanke's reverse Robin Hood ramps on, alongside the Russell 2000.

Joking aside, something notable is that while the Fed is not monetizing anything between Christmas and New Year's Day in 2013, it had no problems with injecting liquidity in the quiet week of 2012. One wonders what changed.

Source: Central Planning Politburo of New York

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Bastiat's picture

. . . or any other days either.

kushmere's picture

Exactly what I was about to post!


Come celebrate the 1k Bubble with us at


gmrpeabody's picture

I'm just about ready to take positions in SRS and SKF, sit back and let the chips fall as they may.

asteroids's picture

For Gawds sake don't. Wait. When things start flying apart, you'll have plenty of time to jump in. If you buy this stuff, you are just giving ammo to the boyz and their supercomputers. They'll chop you up.

gmrpeabody's picture

Yes, I am going to wait. But my trigger finger is itching something awful...

superflex's picture

Now I know what days to short gold and silver.

Cacete de Ouro's picture

One of these years, Kevin Henry may end up like this guy
Hint: Santa Claus suit, fish, Dan Aykroyd


Kevin, you better watch out, you better be good...

Waterfallsparkles's picture

Looks like a December Taper.  They do not want anyone to front run them or they are giving the Big Boys good days to sell into strenth.

Have to wipe out all shorts before the Market crashes.

Yen Cross's picture

   Fuck You Bernanke! I hope you fall into a dumpster full of used AIDS infected hypodermic needles cocksucker!

  I feel better now...

Traianus Augustus's picture

According to this the market will crash on 12/18.  Either that or they plan a bankers holiday.

FiatFapper's picture

Surely for price to go higher, they need sellers to buy from; isn't that a fundamential rule of market machinations?

Perhaps SP500 will retrace south a few hundred pips before these POMO days, to test lower liquidity and dupe sellers.

desirdavenir's picture

so on dec. 19 nobody is short whem the Fed *might* announce the beginning of the taper...

Politically speaking, having a small, controlled crash for taper would be the best excuse to shut down every dissent for the rest of Yellen's term on no taper ever more.

highwaytoserfdom's picture

A Black Swan is not preicitable but.............

jpc578's picture

The Fed shouldn't be taking off the week between Christmas and New Years. Since January 2 the Fed's balance sheet has increased $2.96 trillion to $3.91 trillion. A 32.1% increase. Over that period of time the S&P is up 26.7%, the Dow is up 22.8%, the NASDAQ is up 30.8%. The Wilshire 5000 is up only 28.1%. The markets are underperoming the Fed's balance sheet this year. This can't be a good sign.