POMO comes in at 3.07x

This leaves the Primary Dealers with cash in hand, here's the NY- FEDS POMO operation link for today


The question remains, does the plunge protection team step in as usual when the submitted:accepted is blow 4.1x? We have been seeing strange behavior in the bond markets, by PIMCO and some strange statements from the Fed itself, enough to wonder whether they are trying to unwind themselves from QE2 in some manner. Perhaps they recognize the asset bubble they've created as well as the commodity bubble and the inevitable effect it will have on inflation and stocks sooner rather then later?


Here's the 3C 1 min charts...

 The defining feature of all 3 charts is the weakness seen on Friday-see Fridays last post about it. The DIA shows a negative divergence this morning and is so far in line with price. If the POMO money is going to show up, it hasn't yet in a meaningful way here yet.

 The 's are the same as above with a question as to the most recent 3C reading, whether it's just catching up on the downside or showing the start of some positive divergence.

SPY shows the broad Friday afternoon weakness a negative divergence this morning at the high, and what appears to be the start of a positive divergence. POMO may come in two ways, the typical "close the market green" or the Fed may be taking a different position, that of a "controlled fall". We'll see
or it could be that 6-8 billion is just not enough.