Monday, September 27, 2010

Global Macro: "The increasing frequency of the Fed’s POMOs"

Watch Everything.
From FT Alphaville:
Here’s a nice chart from Olivier Jakob at Petromatrix, who is taking an increasingly broad view of market goings-on in his bid to interpret the energy complex — oil, gas, the lot — on a daily basis:

It shows, as he notes, the scale and increased frequency of the Federal Reserve’s permanent open market operations (POMO).

And with the energy complex increasingly tied to the cross-correlated world of equities and bonds, all this POMO activity is once again beginning to pervert markets, he says....MORE