Another month has gone by and the Fed has pumped another $110B or so into the markets via the Primary Dealers. With the completion of last month's POMO schedule, (POMO explanation found here): http://tfmetalsreport.blogspot.com/2010/12/turds-glossary.html
the Fed has, of course, released the new POMO schedule for the upcoming month. To no one's surprise, here comes another, brand-spanking-new $93B in fresh greenback over the horizon. Oh, and if anyone wonders why this month is $17B less than last month, take a look at the calendar. Its February and, since this isn't a leap year, that simply means there's three less days for The Bernank to run the presses.
Now, without further delay, here is the schedule of your Federal Reserve in action:
The bottom line is...If it's denominated in dollars, its going UP. Oh, you might catch the occasional break and have something move down temporarily but, far more often than not, if you're short, you're gonna get your ass handed to you. Period.
Here's our regular monthly summary:
Asset 1/12/11 2/10/11 Total
March Wheat 7.71 8.63 +11.93%
March Copper 441.60 454.35 +2.89%
March ES (mini S&P) 1283 1319 +2.81%
March Silver 29.67 30.09 +1.42%
March Soya 14.15 14.33 +1.27%
March Sugar 31.98 32.05 +0.22%
April Gold 1388 1362 -1.87%
March Crude 91.87 86.73 -5.59%
If I were a betting man....and I am...I'd be willing to wager that the underperformers will "revert to the mean" over the next 4 weeks. In fact, that's such a good idea that I'm going to buy some crude and sugar calls tomorrow. Its hard to imagine those two not playing catch up over the next month.
Please be sure to read Harvey tonight as he is getting very excited:
Also, be sure to read this from Trader Dan:
And I'd really encourage you to spend some time with this...if you can somehow ignore Kudlow:
OK, that's it. So far, things are trading nicely this evening so I hope to take the rest of the day off.
A few folks had asked earlier just what I would recommend to the "WB Group" IF they exist and IF they are looking for advice. I'd put the frickin hammer down tomorrow. I'd buy silver with both hands in an attempt to really squeeze the pussy shorts and drive price through $31. The high on the weekly chart is $30.98 from 12/31/10 so, if you could get price UP through there heading into next week...well, lets just say it would be beneficial to all of our long-term interests.