Now Reading
Ben’s Middle Finger

Ben’s Middle Finger

by The MoleNovember 10, 2010

Pointed at the shorts that is:

Click on the image or here for the NY Fed’s POMO calendar page.

And I quote:

Across all operations in the schedule listed below, the Desk plans to purchase approximately $105 billion. This represents $75 billion in purchases of the announced $600 billion purchase program and $30 billion of principal payments from agency debt and agency MBS expected to be received between mid-November and mid-December.

Well, there you have it, folks – do I care about those POMO auctions? Not really – I’ve long given up on the notion of final justice for either Mr. Bernanke or the fat cat banksters he’s feeding cookies on a daily basis. But what I care about is downside risk and that’s pretty much eliminated if you can lever $105 Billion by a factor of 100 and throw it into the equity maelstrom.

Let’s take a quick peek at our DXY chart:

The Dollar bounced off an important resistance line today (marked in tasty lime) – unless it can breach it soon I expect it to be pounded into the ground yet again. We now have a 76 – 78 range that needs to be breached – either to the up or down side – pick your poison. We burned a lot of valuable upside momentum in those recent sideways bounces and unless it makes a run for it soon I see more red candles for ole’ bucky.

Unless a miracle happens on the currency side (fat chance with G20 in the works) my sentiment is that we may see a little correction in equities which however will be bought near the 1100 mark – that’s probably the extend of what we’ll see ahead of the X-Mas rally. Either that or it’s sideways gyrations into the new year.



About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c