For those of you who have inquired about a simple explanation of how POMO works and how it's tax on us all (as more money is printed, money in circulation loses value), here's a cartoon that sums it up all pretty well.
Wednesday, January 26, 2011
Look Mom and Dad- No POMO Today!
As we have seen way too often to be a mere coincidence, POMO days see accumulation and then a melt-up around 11 a.m. when operations are officially completed and the Primary Delaers pockets are lined with obscene profits for simply flipping a 2 week old treasury to the Fed-no risk whatsoever, billions of dollars for free and it goes right into the market around that time. Today there's no POMO and look at the chart, a little different then yesterday's huh?
Yesterday's strong 3C reading indicating a stronger green open for equities today, but look at 3C around 11 a.m.-is that a leading negative divergence? Yep.
For those of you who have inquired about a simple explanation of how POMO works and how it's tax on us all (as more money is printed, money in circulation loses value), here's a cartoon that sums it up all pretty well.
For those of you who have inquired about a simple explanation of how POMO works and how it's tax on us all (as more money is printed, money in circulation loses value), here's a cartoon that sums it up all pretty well.
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