This page has been archived and commenting is disabled.

Shorting Stocks On These January POMO Days May Be Hazardous For Your Health

Tyler Durden's picture




 

Death, (rising) taxes, and shorting stocks on POMO days resulting in lots of margin pain: those were the near certainties of 2013 even admitted by the US Treasury. So how does the first POMO schedule of 2014 look like? Well, as is by now well-known, the Fed will taper its monthly purchase of Treasury securities by $5 billion so instead of the old $45 billion per month, the NY Fed will "only" monetize $40 billion next month. However, since the reduction will be prorated across all POMO days, the old maxim still stands: shorting stocks on these POMO days can and likely will be hazardous for your health. Of note: no POMOs in the first week of the year until Monday January 6.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 12/30/2013 - 16:15 | 4286232 InjectTheVenom
InjectTheVenom's picture

You didn't short that !

Mon, 12/30/2013 - 16:19 | 4286260 negative rates
negative rates's picture

You didn't stick that in the mud either.

Mon, 12/30/2013 - 16:34 | 4286283 Cult_of_Reason
Cult_of_Reason's picture

Monday January 6 POMO is relatively small (only $1.0 - 1.5B of Bernanke Miracle-Gro), not enough for further levitation and defying gravity from these pie-in-the-sky exuberantly high levels.

http://media.yoism.org/Bernanke.gif

Mon, 12/30/2013 - 16:15 | 4286239 FieldingMellish
FieldingMellish's picture

So... basically 2nd, 3rd, 29th is OK to short...

 

Gold heading under $1200..... down.... down.... down..... thanks to the miracle recovery of Ben and Barack.

Mon, 12/30/2013 - 16:23 | 4286276 negative rates
negative rates's picture

It's 2 to 1 downers from here on out, either silver or gold goes down, they both go down. See why it's so hard to raise the price of PM's now?

Mon, 12/30/2013 - 16:48 | 4286372 FieldingMellish
FieldingMellish's picture

$ index teetering on 80.... PMs geting spanked hard in the woodshed to keep the Pig afloat.

Mon, 12/30/2013 - 16:25 | 4286279 icanhasbailout
icanhasbailout's picture

Jan 9th looking very suspicious to me. Mark your calendar with an ominous squiggle.

Mon, 12/30/2013 - 20:15 | 4286920 goldflows
goldflows's picture

Hey isnt that the day before "jobs report"?  I am betting December will show (holiday cycle + plently unemployed coming off charts yet still couchbound + $1.3mil in expired benifits =) good jobs "news".

 

This would imply negative market consequences, no?

Mon, 12/30/2013 - 16:18 | 4286241 Yen Cross
Yen Cross's picture

     Is the Fed. going to do a January reverse repo list? Just a general $ amount "guidance" list would be be fine. /s

Mon, 12/30/2013 - 16:15 | 4286244 philosophers bone
philosophers bone's picture

LOL, every day!!  Are the banks buying stocks directly (ie. picking and choosing) or just buying index ETFs?  Not that i give a shit as I'm out of the market, but just wondering.

Mon, 12/30/2013 - 20:13 | 4286908 goldflows
goldflows's picture

By the extreme moves in these tech/social media companies, I am inclined to beleive they are directly trading them more so than usual.  Hey we all know FB, TWTR, and HLF are ultimately going to be the ones most effectively crashed when TSHTF given these unicorn land P/E's...

But till the music stops (Sep 2014 ish?) just keep buying!

Mon, 12/30/2013 - 16:18 | 4286251 EmmittFitzhume
EmmittFitzhume's picture

Fuck you Bernellen!

Mon, 12/30/2013 - 16:22 | 4286266 Stoploss
Stoploss's picture

Ah yes, another year of FED front running.

 

===============================FUCK THE FED=========================================

Mon, 12/30/2013 - 16:35 | 4286312 Waterfallsparkles
Waterfallsparkles's picture

Short Stocks?  What is that?

Mon, 12/30/2013 - 18:57 | 4286701 yogibear
yogibear's picture

That was many years ago.

Mon, 12/30/2013 - 16:37 | 4286317 Bo Peep
Bo Peep's picture

Bens gonna be awfully sore very soon

Mon, 12/30/2013 - 17:40 | 4286494 moneybots
moneybots's picture

I like the term Outright.

Mon, 12/30/2013 - 21:31 | 4287090 motorollin
motorollin's picture

It's about the only thing that's up front and outright in this POS market.

Mon, 12/30/2013 - 17:42 | 4286499 max2205
max2205's picture

Institutionalize insanity

Mon, 12/30/2013 - 19:00 | 4286712 yogibear
yogibear's picture

So we go to the Mother of All Bubbles.

Thu, 01/02/2014 - 16:18 | 4294137 undercover brother
undercover brother's picture

so far, all the inflation that's been produced by uncle ben has gone into the stock market nice and clean.   it will eventually have to come out for one reason or another and will relocate somewhere else.  Pick it.  bonds, metals, energy, grains, etc.  No repo operation can yank $3 trillion out of the money supply quick enough to prevent massive inflation in other areas which is coming soon.  

Fri, 01/03/2014 - 17:23 | 4297825 screw face
screw face's picture

MOAR popcorn

Do NOT follow this link or you will be banned from the site!