Post by jeffolie on May 7, 2013 17:05:58 GMT -6
www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/04/POMO%20May.jpg
Shorting Stocks On These POMO Days Will Be Hazardous To Your Health
04/30/2013
Previously, when previewing the next month's POMO days, we cautioned readers by saying that "Shorting Stocks On These POMO Days May Be Hazardous To Your Health." Courtesy of the BOJ ludicrous speed launch of its own version of POMO, which sees the combined global central bank authority raising the amount of monthly incremental liquidity to $160 billion, we are upgrading the cautionary language from "may" to "will."
Below are the May days when Kevin Henry will be injecting liquidity. Note that just like today, the second largest POMO day is once again reserved for the month end window-dressing day. Nothing escapes those Fed PhD traders. Curiously, and just like in the past, NFP day is POMO-free.
www.zerohedge.com/news/2013-04-30/shorting-stocks-these-pomo-days-will-be-hazardous-your-health
FOMO Is The New POMO
05/07/2013
Herd Mentality
Momentum
Chasing POMO
By now everyone knows that POMO is the daily physical manifestation of the Fed's love for the "1%", and the trillions in underfunded pension and stock-linked entitlements, taking place (almost) every day in the hours between 10:15am and 11:00 am Eastern, when the NY Fed's trading desk injects between $1 and $6 billion in the stock market. What many may not know is that while POMO was the name of the game since 2009 (just think where the S&P would be if the "market" was only open on Thursday, during the 45 minute duration of POMO, and between 3:30 pm and 4:15 pm), it may have finally met its homophonous match, courtesy of Citigroup. So step aside POMO. Presenting.... FOMO, or Fear Of Missing Out.
From Citi's Stephen Antczak:
Fear Of Missing Out outweighs all others
There is a new factor that investors seem to be incredibly wary of, and it has nothing to do with fiscal challenges in Europe, a slow economic backdrop, shareholder-friendly activities, or the potential for rising rates. What investors seem to be most afraid of at this stage is simply missing out – missing out on carry in the best case, and continued tightening in the worst.... This FOMO mentality has become more acute and may outweigh all other worries in the near-term.
And circularly #Reffing! scene.
Golfclap oh Great Chairsatan: you have finally made the momentum chasing herd mentality, driven by the fear of a pink slip, the only game in town. How this has anything but a very happy ending for everyone is simply beyond us.
www.zerohedge.com/news/2013-05-07/fomo-new-pomo