One of the most intensely debated topics is how much has POMO changed the price in the S&P500. Below are a few charts. (h/t @ZH_CB)
There are things wrong with the first two charts, mainly that charts record and never tell the complete story. The last chart would make a strong case for correlation but I cannot confirm or deny the accuracy and the data is not complete.
I am not here to argue either way but as time passes I would like to declare a winner. So lets agree on an amount of time and price action that would once and for all end the debate. If it is in fact causation the market should be drifting down but when? For those in that camp lets determine when a good date for it to move down by is. For those in the correlation group name your price. Where is this market heading before there is a significant pull back?
These are just a few suggestions off the top of my head, if you can think of something better leave a comment.
We would really appreciate your feedback, if you like, hate, or think we are full of crap. Please leave a comment, a voice mail (312) 725-9121, email info @ traderhabits (dot) com or twitter, stocktwits, youtube and facebook. Subscribe to Traderhabits by email or to newsletter.