Mo (More) POMO fo (for) Yo (You)

The Fed released the new POMO schedule this afternoon.  The release time was 2 PM EST but the Fed was 45 minutes late, so they receive a 'D' for tardiness.  Chairman Bernanke anounced the QE2 POMO pumping program in late August that began the orgy of equity buying over the last few months.  The end date is June and todays schedule addresses the program thru 5/11/11.

Of interest is the amount of POMO which stays at 80 billion; the Fed obviously did not want to rock the boat.  Chairman Bernnake wants to continue kicking the can down the road hoping that time heals all wounds with the fragile recovery.  With todays schedule release, make no mistake that Bernanke runs the show and the dovish posture exhibited by Bernake, Yellen and Dudley rules the roost, despite any good cop bad cop talk you hear from the hawkish members such as Bullard or Lacker.

Every day between 10 AM EST and 11:15 AM, the Fed will continue to goose the markets favoring the bulls just as Bernanke said he would under his embarassing new mandate of keeping equity markets buoyant at all costs.  What has the United States of America become?

Notable days absent of POMO are 4/21/11 and 4/22/11, which correspond to the day before the Good Friday session and the Good Friday holiday when the markets are closed.  In addition, the POMO pumping will not occur on 4/27/11, which is the second day of the FOMC meeting when the rate decision will be released, as well as the debut of the first Bernanke Q&A session, which takes a page out of the Trichet ECB play book.  Perhaps Bernanke will don a tux and tails on that Wednesday, including tap shoes, and perform his own Fred Astaire song and dance, covering over any market woes with smoke and mirrors.

May will receive steady POMO pumps each morning session into the new schedule release at 2 PM EST on 5/11/11.  At that time we find out if the schedule will address the period thru mid June, or if the Fed provides a six week schedule that closes out the POMO scheme thru June.

The following link to the New York Fed web site shows the individual purchase amounts each day and can serve as your daily scorecard.  A POMO link also appears in the margin on this site and on Keybot the Quant's site for easy reference moving forward.  Remember, POMO pumps favor market bulls and help keep equities markets buoyant, as in don't fight the Fed.  But, instead of markets continuing to go up, the POMO pumps may simpy be required to stop the markets from falling precipitously.

Tentative Outright Treasury Operation Schedule (POMO Pump)
http://www.newyorkfed.org/markets/tot_operation_schedule.html#