POMO - The New Kid On The "Blog"

What is the point of working with technical parameters when they go out of fashion! Today I was introduced to the indicator that throws all others in the bin, potentially:
Called POMO - Permanent Open Market Operations, it tells us when the FED goes on a shopping spree in capital markets.  And they even announce when they are buying - and how much there are willing to spend.
Word in the Street has it, that on most such occasions, markets turned, often sharply, up. This - now very regular - intervention negates in particular expectations for the downside, i.e. bears are becoming frustratingly sidelined.  
The motto: if the sun shines, fine, if it rains, get the FED. Hurray, no more down-days.
That is exactly what happened last night, too: we saw Asian and European stocks taking a well deserved breather, - but as soon as the US markets opened - and fell by some 100 points, in the breach they sprint to save the day with a small plus, - good enough to turn the rest of the global trades the following day.

So here I was thinking I was going over the edge with my negative expectations.  I knew that someone in the US was reading my blog, (a very dubious traffic source "http://www.moredietplan.com") - but I didn't think they would go to that length to spoil my spoils.

Since they are forward enough to tell us when they buy next all the way till early December, we can adjust our strategy accordingly, and we won't be the only ones. What to do, we are so kiasu - we go with the flow!

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