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Diminishing Returns
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Diminishing Returns

Diminishing Returns

by The MoleJuly 3, 2013

Apparently today was July’s biggest POMO auction and I wasn’t exactly surprised to see a low participation bounce here off the pre-NYSE lows. However when it comes to free Fed cash pumping days there increasingly appears to be a diminishing reward/input ratio. Really, $5 Billion and this is the best they could do? I’m not impressed…

As we’re going to finish today in limbo let’s however remind everyone what’s at stake on Friday and most likely going into next week. The two inflection points until Tuesday night are the Net-Line Buy Level (NLBL) at 1614.25 and the Net-Line Sell Level (NLSL) at 1594.75 – the 19.5 handles in between should be considered no-man’s land – little edge unless you play the swings. That’s all there is to it – no further thinking involved.

Since most of you cats are bridging into Monday all that’s left is for me to wish you all an enjoyable and relaxing 4th of July weekend.

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Cheers,

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.
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