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Mini Pomo
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Mini Pomo

by The MoleSeptember 15, 2009

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.


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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