Wednesday, November 10, 2010

Holy POMO

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In the grand mass psychology experiment i.e. the herding of rats through a maze the conventional wisdom is you can no longer bet against the market on POMO days as the Fed lifts treasuries off the primary dealers hands in return for mad money and the primary dealers...well magical things happen to assets.  If you take out the middle man (primary dealers) you are just left with the Fed and the magic of a market that jumps when commanded and asks how high.  And now that the rats are trained to front run the primary dealers it has become self reinforcing.

There is so much money coming down the pike and if the next months schedule is reflective of the ensuing 7 months bears apparently will have 2 days a month to operate in a free market.

Behold POMO!

This Friday
The following Monday, Tuesday, Wednesday, Thursday, Friday
The following Monday, Tuesday (Thursday is a holiday and Friday is a half day...bears welcome to take their shot WednesdayL
The following Monday, Tuesday, Wednesday, Thursday, Friday
The following Monday, Tuesday, Wednesday, Thursday (the schedule ends there...I assume Friday will be on the next POMO schedule)

In summary..bears have 2 days to work before the now daily 10:15 AM pump.  Wednesday pre thanksgiving and half the day on Black Friday.  Both days traditionally run by the retail class as the shoddiest of chinese stocks or (a decade ago) the harriest of dot coms run to the moon.

Enjoy

x

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