Mini Pomo

12:42pm EDT: Good day everyone – I chose to sleep in today and it seems except for the now regularly scheduled early morning bear trap I didn’t really miss anything.

What was interesting however is what happened behind the scenes and I’m referring to this morning’s POMO auction – or should I call it the Mini-POMO auction? Come on – only $2 Billion accepted? Are they running out of ink over at the Fed or what’s going on?

The wave count has not changed – and I expect to see 1060 in a short order – which I will use to add more puts. But realistically we’ll be seeing 1080 until we should afford any hopes of a sell off (i.e. P3 or just a medium term retracement).

Some of you rats might remember mentioning the NYSE Bullish Percent Index a few weeks ago. Well, this sweet baby is now painting readings in the 80 range, which is something I don’t recall seeing – ever – not even during the bull market. Which is why Mole feels the moral obligation to short the heck out of this market – I just can’t help myself.

1:45pm EDT: Tyler over at ZH just answered my question as to why this auction was so teeny-weeny.

With today’s action there is exactly $16.7 billion left remaining in the QE treasury basket. I knew they were running out of cash but I didn’t know they were running that low. Curious how far they’ll be able to stretch the remaining funds. Could it be that Primary {2} will end when the POMO cash runs out? I wouldn’t be suprised – unless of course I’m a tinfoil wearing beartard (which I am but that doesn’t mean I’m wrong).

1:55pm EDT: That’s quite a drop in the ole’ buck:

With about 4% DSI bulls according to trade-futures.com – I truly wonder how far the Fed can push their currency games. The Chinese can’t be happy about that and neither am I as gasoline prices are pushing towards $3.50 (for 97) here in Los Angeles.