By Sell Puts
Not much has changed since my mid day market update, though we have gong basically straight up breaking highs a bit after noon NYC time. What is interesting is the POMO today, which the Fed bought $550.0 million in TIPS from primary dealers. This injection of liquidity was substantial enough to ramp the Dow 90 points the Q's nearly 26 handles as well as ES complete reversal off 1127.50 all the way to 1142.50 where we sit currently.
Let me ask you two questions: Do you think it was value investors buying the market today? Do you think it is coincidence the market seems to gravitate towards VWAP and TWAP?
Answer, No to both questions. Because this market is fake. Yes their is real money exchanging hands, yes on the surface the game looks real. Though the reality behind the wizard curtain capital is being injected like adrenaline into seized heart.
The market has been in drift mode since the POMO began, the massive selling off the open was supposed almost in a god like fashion. Your a damn liar if you though, "hey this selling isnt big, im gonna step in at 1127.50 because we are gonna pivot". The only one who knows where the primary dealers are going to buy are the primary dealers themselves and Benny.
Here we are. market on highs. 1145 even.. up 7.50 handles or .65%. we are up well over 1% from day lows.
I have not even started with the the hell gold futures were doing today.. at all time highs.. ..
