10/18 1:30

POMO. The Fed is buying treasuries in an effort to drive down the dollar.  Their buying is infinitesimal in such a vast marketplace.  Meanwhile our trading partners are wising up and not allowing the Fed the psychological effect of their statements on the markets.  These countries' actions are forming a base in the dollar.  China, Japan, Korea, Singapore, Brazil, BOE, and now the ECB have made public their resistance to further dollar decline by counteracting the Fed's move. How many others are taking action covertly?
If the Fed persists the waters will be poisoned for further cooperation on any future bilateral efforts with governments affected by this blatant tactic.  Yet the market anticipates a big action coming up.  Is this realistic?  If Ben alienates the world's central bankers he will be slitting his own political throat.  Look to Ben not seeking another term and a lot of fence-building being needed next year.
Meanwhile, back in the trenches,  the market is propped up by this illusion of power.  I bought 2% QID at a good price and, with the 12% SDS already held and the SP futures short,  this brought me up to the allocation justified by market conditions.  The SP futures 30-minute M/A is at 1172.05 and is currently on a sell signal.  This will be revoked by any 30-minute close above 1178.