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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: andiron who wrote (86983)9/27/2007 6:31:43 PM
From: bart13   of 110194
 

aren't T meaning temporary...so expiration comes and the money is sucked out by the FED..why would this impact the stock market?


I think a better question is - why wouldn't it? It's "liquidity" being subtracted from the system. At the very least, it's a significant factor and I use it successfully as one element of my trading.
POMOs don't correlate well with the stock market, at least per my work.

With tinfoil hat firmly in place, it seems to me that TIOs are much more important than TOMOs - and we also have the actual record in 2005 & 2006 with my comments and indicators of tops & bottoms in TIOs.



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