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POMO Pump-And-Dump Leaves Stocks In The Red

Submitted by Tyler Durden on 04/21/2014 10:40 -0400

Volume is light, as Europe remains on Easter holiday, but the volatility is back. Biotechs opened notably higher, dumped to unch, ripped to new highs, then dumped again... The S&P 500 managed to regain all last week's dump losses - but stalled then as POMO struck (the biggest in April) and AUDJPY took off in its front-running way but left stocks behind. Of course, there's no need to worry though - tomorrow is Tueaday after all.

Biotechs couldn't hold gains...

As AUDJPY decoupled on POMO and S&P revrted to USDJPY weakness...

which sent stocks to last week's highs...

before they started to dump...

Charts: Bloomberg

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Mon, 04/21/2014 - 10:44 | 4679429 Unknown Poster

The arbitrage algos seem baffled the last couple of days. It almost seems like an exercise in herding cats.

Mon, 04/21/2014 - 10:44 | 4679431 Headbanger

I think it's got a nail in it...

Mon, 04/21/2014 - 10:50 | 4679448 Carl Popper

Buy e minis about 230 pm. Sell at close.

You should always follow the advice of anonymous posters on the internet. We will make you money.

Mon, 04/21/2014 - 10:53 | 4679461 Randy Goodnight

I'd say the top is here or very near. Blatant "distribution" occurring here.
Retail suckers going to get burned.

Mon, 04/21/2014 - 11:36 | 4679597 slightlyskeptical

If we can't break above 1872-3, then the technicals say you re correct. If it fails next resistance is at 1815.

Mon, 04/21/2014 - 10:56 | 4679472 Cognitive Dissonance

"Get in there and turn those machines back on." - Yellen yelling her head off.

Mon, 04/21/2014 - 11:00 | 4679478 SmilinJoeFizzion

And yet the VIX doesnt budge- As soon as Bidens wheels touched down in Kiev the VIX should have spiked over 20

Mon, 04/21/2014 - 11:04 | 4679488 FieldingMellish

Saw that too. Protection is being sold all around.

Mon, 04/21/2014 - 11:00 | 4679479 SmilinJoeFizzion

And yet the VIX doesnt budge- As soon as Bidens wheels touched down in Kiev the VIX should have spiked over 20

Mon, 04/21/2014 - 11:01 | 4679480 SmilinJoeFizzion

And yet the VIX doesnt budge- As soon as Bidens wheels touched down in Kiev the VIX should have spiked over 20

Mon, 04/21/2014 - 11:05 | 4679496 BeetleBailey

La Ka Ka...a la Moonday mourning...

MOAR of the same POMO, MOMO, VIX-y Trick-sy...Fuckbama...with a dose of Choo Choo Joey sharting the headlines.....

Mon, 04/21/2014 - 11:09 | 4679509 valley chick

How light is the volume? Dang, looks more like a ghost town.

Mon, 04/21/2014 - 11:13 | 4679519 SheepDog-One

The rigged casino is even more empty than usual....Europeans still eating ham worshipping an old Bronze Age comic book character.

Mon, 04/21/2014 - 11:18 | 4679535 TheRideNeverEnds

Just buy the dip, we are going higher.

Mon, 04/21/2014 - 11:40 | 4679607 Midnight Rider

All things have their limits. Stocks always reach limits under any given profit/interest rate environment. Markets have already reset higher given the current environment. Just because interest rates are zero doesn't mean stocks can go to infinity. Combine this with profit margins having peaked and tapering QE. I would project a rougher bull ride ahead. You may think the Fed will untaper, but they really do realize QE is no longer productive and is blowing unsustainable bubbles. The only arguement left is at what point to raise interest rates.

Mon, 04/21/2014 - 11:19 | 4679539 unplugged