POMO Predictability

As we have seen before, 11 a.m., the conclusion of POMO operation seems to be a time the market is accumulated and inflated. It seems more then obvious that primary dealers making billions of dollars from the Fed are responsible for this phenomena. Here's today's latest incarnation.

 Note the time of the positive divergence and what happens after.

We know the Fed is buying issues from the P.D.'s that were just issued weeks ago, today we find out that instead of buying the issues that will give the Fed the most bang for the buck, their lining the P.D's pockets by buying the most expensive issues. This is absolutely insane that this isn't being picked up on by congress, but I suppose you never know how deep these things run.