Seeking Alpha

Kevin Wilde's  Instablog

Kevin Wilde
Send Message
Kevin Wilde is the chief trading strategist at alphaking.com and a Marketocracy.com Master. Investors can follow his trading advisories via his Daily AK newsletter, or have their money run for them via Marketocracy.com money management services, where Kevin's trades will be automatically entered.
My company:
AlphaKing.com
  • FED WOW! Moment 1 comment
    Nov 15, 2013 9:02 AM | about stocks: SPY, TZA, MDY

    I have been monitoring this breakout to see if we are in an Elliott Wave 5 move where the breakout post sideways churn soon reverses and leads to a deeper correction, versus the recent breakout being the start of a mega Elliott Wave 3, which is the melt-up wave.

    Well the FED, it appears, wants it to be the latter, since next week has some mega POMO bond buying, which frees up money for buying stocks. They usually time the big POMO days for big economic news events, to make it appear the market reaction is favorable, or at least to soak up some of the red ink if the reaction is bad.

    Last Friday's jobs report was fronted with $5.2 billion of POMO

    This week they did a total of $7 billion, with nearly half of it coming yesterday to welcome Janet.

    Next week has a total of $16 billion - more than twice as much as this week!!! - with Monday, Tuesday, and Thursday ALL big POMO days, which very unusual to have so many biggies in the same week.

    This says to me two things - either the market is up huge next week to push us into a clear Elliott Wave 3 melt-up, or the rally falters and dies once the POMO is out of the way, making the FED intervention impotent for the first time.

    This seems like a WOW! moment in FED manipulation.

    If you would like to track updates on the chart shown below sign up at alphaking.com, click on the verification email, and get THREE months access to my on-line newsletter for free! This is a limited time offer that will not be repeated in 2013.

    We will know the stock market has reached the melt-up phase when the hedging indicator at the top of the chart below turns positive. Till then, longs should remain hedged.

    -Kevin

    (click to enlarge)

    Disclosure: I am long MDY, TZA.

    Stocks: SPY, TZA, MDY
Back To Kevin Wilde's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • whidbey
    , contributor
    Comments (3391) | Send Message
     
    Very interesting Kevin, thanks. You seem to have something that explains the POMO timing and its effects on investors.
    16 Nov 2013, 08:44 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.