8/20/2013

50 MA is the line to watch today. After early morning pop, the $SPX is confined in a small range from 1655 to 1659. Maybe it will just stay in the range for the rest of the day. We'll see.

POMO Update (08/01/2013): Sight Tilt To Short Term

In the past two weeks the Fed bought $14B 7-year and 5-year notes, and $11B 10-year notes and 30-year bonds. It appears that the Fed slightly tilted towards short duration Treasuries. According to my two SeekingAlpha articles (here and here), overweighing short duration Treasuries may indicate the Fed in itself is preparing for tapering.

I'll post another update two weeks later.