POMO

by Larry Levin

 

The market finally broke out of its multi-week congestion zone Tuesday as all the major indices fell.  Despite the breakout from the recent maddening chop zone, the range in the S&P500 was small and the volume was only slightly better than average.
 
Why the fall?  One claimed reason was the recent elevation of Japanese radiation levels to Level 7.  If the daily cover up ever ends, one wonders if a new Level 8 will need to be invented.
 
The other claimed reason was Alcoa’s (AA) miss on earnings.  AA was slammed 6% blaming it on higher energy and raw-material costs, but who didn’t see that coming?  Both higher energy and raw-material costs are passed along to consumers via much higher prices (read: inflation) or corporations eat it, and post smaller profits.  
 
Sorry Backstop-Ben, you can’t have it both ways.
 
Speaking of Benny & The Inkjets, the latest POMO (debt monetizing) schedule was released today...

 

Click here to see the schedule

 

 

 

Trade Date: 4/12/11
E-Mini S&P Trades*
(before fees and commissions):

Pivot buy @ 9:58am at 1306.00 = -.25 & b/e (2 lot)  Algorithm positions (5)  “Reading the Tape” positions (8) ...combined Secret’s, Algo, & “Reading the Tape” total... +6.00

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