No, that POMO stuff would be for daytraders, but it also is probably helping with the market levitation in general. Today there was hardly any noticeable bounce during that 45 minute time period, maybe a quarter percent...or maybe just the fact that the markets held up again today was the POMO effect.
I was being very conservative getting out yesterday, there's just too many technical issues screaming for a fall and I didn't want to overstay my welcome like I did in May when I got greedy and it cost me nearly 10%. I was hoping for 2% in this move (and I had it early in the day yesterday), but only got 1%, I'll take it though.
I was hardly 4 months ago that QE was seen by the markets as weakness in recovery and then the market tanked.
All this QE bs about how it will be a great boost to the market is just that- BS.
IMO, At this stage of the game the algo writers are 10 steps ahead and jumped on the seasonal & midterm trend history, now they are either range bound with little wiggle room, or have this extended top planned to lure in whoever they can before they churn and burn.
Like bringing checkers to a chess game, unless it's your full time job...
I think the best results of Fed inflow will spur inflation, which would create an exodus from ST bonds, or bond ETF's, but that will be a while developing.
All the corporate cash sitting on the sidelines isn't going to be doled out indiscriminately or all of a sudden because liquidity is power, so it would be hard to imagine more than a slight uptick in inflation that signals healthier recovery activity.
I'd say we will need a couple mil people back to work before we go up from here.
A corporate dichotomy- more hiring, means less ST profits before growth,
-or- don't hire, and maintain lowered growth expectations and higher profits.
