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.


About Mark Hanna 542 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

Visit: Market Montage

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