It used to be conventional wisdom that shorting on POMO days is a sure way to drain one’s P&L in no time. However, since the arrival of tapering, this has changed, and no longer is the surgeon general advising against shorting on POMO days especially if concurrent with an implosion in this emerging market or that.
Moments ago the Fed released its February POMO schedule, where we find, that as expected, the Fed will now monetize “only” $35 billion in duration paper, down from $40 billion in January and the $45 billion monthly in all of 2013. Of note: there will be a POMO on Monday, and a double POMO – the only one in February – on February 5. There will be no POMOs on February 11, on February 13, and February 17 – the most non-POMO days in a month since the launch of QEternity. All the other days: just keep an eye on the USDJPY, especially if the epic support barrier at 102 is finally breached. In that case, it’s is every colocalized vacuum tube and HFT algo for itself.
via Zero Hedge http://ift.tt/1fstCgZ Tyler Durden