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POMO Saves Equities Reversal With $5 Billion Injection

NEW YORK ( TheGoldAndOilGuy.com) -- This week I talked about how the uptrend is to be the focus of trading positions until a downtrend is actually confirmed via price and volume action. The S&P 500 was very close to reversing down this week, but the POMO's (permanent open market operations) scheduled largest injection of money for February, of more than $5 billion, sent stocks soaring, jamming stocks back up into its uptrend.

Take a look at the normal daily injections and then look at Feb. 27 one.

S&P 500 Futures: 10-Minute Chart Zoomed Back 48 Hours

S&P 500 Trend: Green, Orange, Red Candles Indicate Trend Direction

Short-Term Trading Conclusion

Following the bigger underlying trend of the market along with the big money will keep you on the right side of the market more times than not. My trading strategy, which is now programmed into my trading system, clearly tells me the current market trend, entry signals, profit taking, stop adjustments and exit prices.

Creating a proven trading strategy that works in all market conditions and having it programmed to do 95% of the analysis for you keeps my trading emotions in check, saves me time and money and keeps things simple, which is the key for long-term success. So keep your eye on the POMO's injection schedule each month for days to focus on long daytrades or entry points for swing trades.

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This article was written by an independent contributor, separate from TheStreet's regular news coverage.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Chris Vermeulen is founder of the popular trading sites www.thegoldandoilguy.com and www.ActiveTradingPartners.com. There he shares his highly successful, low-risk trading method. Since 2001, Chris has been a leader in teaching others to skillfully trade in gold, silver, oil and stocks in both bull and bear markets.

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