10/06/2011 Intraday Watering

[heavenskrow]

From Zerohedge

In a first for the Fed, 15 minutes ago the Fed started its first anti-POMO, or outright bond sale, this time for up to $9 billion in bonds due between 01/15/2012 – 07/31/2012. This is liquidity taken out of the market (think reverse repo) and money that can not be used to buy Netflix by the primary dealers. As a result, the recent (massively levered: thank you HFT in FX and 200x margin) surge in the EURUSD would make sense, as the last thing the market needs is for the robots to find a correlation between inverse POMO days and market drops, which would then be front run on any of the next anti-POMO days. The operation will conclude at 11 am EDT. Expect to see an end to the EURUSD rise as soon as the operation is concluded.

I can’t always absorb the complex zh stuff on bond mkt… me have to simplify it to: FED sells bonds = bull spy
Dovetails nicely w jarbo’s inside dirt on squid selling munis = bull spy
SOOOO impt, as bond market is the 800-zillion pound gorilla in our global jungle market.
PS: am always late getting to my church (zerohedge.com); appreciate the heads up namo

[uempel]

uempel,
your 1150 target has met so are you shorting?

Yeah, but I already covered half the position, the market is just not heading down, too bullish. I guess there will be a reversal at 1159, and if that fails it's 1199. Check the weekly chart:

[heavenskrow]

FINANCIALS TAKING OFF BABY!!! TEAR THOSE BEARS TO SHREDS =]

[tdo722]

I am shorting in anticipating of the setup of a much larger bounce up to 1170 and beyond. Can we say a corrective wave down to 1110 to 1125 area?

Therefore, I am still in 10% capital for the long. 10% capital for the short. Still making money but profit needs to be protected.



Stay Greedy My Friends!

[waverider]

going in SPXU for a quick scalp

Or going into spxu to get scalped?

[jaijailyc]

going in SPXU for a quick scalp

Or going into spxu to get scalped?

i was in @ 1151 and out @ 1147, so I am okay.

[uempel]

Jarbo, I never followed munis in 2008 - do you have more information? Or can you give me a the XXX of a good/typical muni-product so that I can backtest a ratio XXX/equities for 2007/2009? Tks.

[BullBear52x]

I can feel a tension here, why? please post charts and reason so we all can get rich. yea baby get rich together.

[jarbo456]

Jarbo, I never followed munis in 2008 - do you have more information? Or can you give me a the XXX of a good/typical muni-product so that I can backtest a ratio XXX/equities for 2007/2009? Tks.

eh not sure...but i guess MUB would be the best of the bad options?

[uempel]

Check the blue ellipse...

SPX3.png

remember resistance is not working, only support.

Ok, I'll short again at 1159, you pls stay long

[agnosia]

hey guys late morning for me... it looks like we are basing nicely under /es 1154.5 gap and /cl 82.14 gap and my guess is that tmrw if we get a good employment report we'll take off and get up to those levels to end this weekend with one final bull bang

[Mongoose]

POMO - Permanent Open Market Operations --
This is easier to understand:
http://www.newyorkfed.org/markets/pomo/ ... /index.cfm

Not to be confused with the POMO people:
http://en.wikipedia.org/wiki/Pomo_people

[uempel]

Jarbo, I never followed munis in 2008 - do you have more information? Or can you give me a the XXX of a good/typical muni-product so that I can backtest a ratio XXX/equities for 2007/2009? Tks.

eh not sure...but i guess MUB would be the best of the bad options?

Thanks.

[ddd]

I have started to trade one direction only today - buying dips and taking profits. No more short trades for me because of concerns of potential short squeezes along the way in the next few days.

[jaijailyc]

going in for another scalp again xD

edit: SPXU 19.10

[jarbo456]

still early to tell, but pretty sure i'm going to go flat for the employment data in the morning. it's too much of a gamble in a market that's already like russian roulette, except the market is playing it with a .45 that's fully loaded and chambered.

[Cobra]

overshot, let's see if any pullback here.

[BullBear52x]

I have started to trade one direction only today - buying dips and taking profits. No more short trades for me because of concerns of potential short squeezes along the way in the next few days.

potential short squeeze? is there other potential?

[Al_Dente]

PAGING jarbo
This update is annotated just 4 u… will drag u kicking and screaming into stk internals
Then maybe later, u can help me “read” cboe most active options, and bernie schaeffer’s p/c ratio and oi and soir as contrary “tell” ?
http://stockcharts.com/h-sc/ui?s=SPY&p= ... =245336889

[heavenskrow]

damn wish i was long financials instead of short bonds

oh well, cant be a pig =p