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Does (or soon “DID” ) QE lead to Positive Up Days in the Market?

October 25, 2014 Leave a comment

 

Just a simple but rather data preparation intensive study shows that the day of POMO did not necessarily lead to a green SPX day. The below plot shows a green SPX day & a day with POMO. If each occurred we get “TRUE”.

From this source QE started on 2008-12-15 which is the start date of this analysis to current day 2014-10-24″.
pomo_102514

Next I may examine if “front-running” the scheduled POMO had an effect by seeing if there were gap ups before the day of POMO. I may also gauge the magnitude of POMO’s impact on the up days.

 

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