- Zero Hedge is happy to advise our readers that finally Goldman Sachs itself has capitulated and is now indirectly telling its clients to frontrun Ben Bernanke via POMO.
- (via Goldman) Since Sept 1 – when QE was becoming a mainstream focus – if you only owned S&P on days when the Fed conducted Open Market Operations (in US Treasuries), your cumulative return is over 11%.
- In addition, 6 of the 7 times when S&P rallied 1% or more, OMO was conducted that day.
- This compares to a YTD return of 5.8%. the point: you would have outperformed the market 2x by being long on just the 16 days when – this is the important part – you knew in advance that OMO was to be conducted. The market's performance on the 19 non-OMO days: +70bps.
As you might know, today is a POMO day - buy at will; the Fed is behind you. "Free markets at work"
Coming POMO days: Oct 26, Oct 28, Nov 1, Nov 4, Nov 8
Coming POMO days: Oct 26, Oct 28, Nov 1, Nov 4, Nov 8
"Secret Secret I've got a Secret"