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INTRA-DAY NEWSLETTER ~ May 4 2015
Goldtrends has been discussing the shrinking Liquidity that is about to hit the markets for a while now and finally it is being reported by the main stream media. It’s the same for the “war on cash” that is coming which will only conclude once all cash is cancelled and we go to plastic for everyone. In this manner the banksters and Fed will avoid the coming bank runs when the debt defaults begin.
“Nor any Drop to Drink, “ Citi Maps the Liquidity Paradox
Submitted by Tyler Durden on 05/04/2015
"From the BIS to BlackRock, and Jamie Dimon to Jose Vinals, everyone seems to be talking about market liquidity," Citi's Matt King writes, before taking an in-depth look at just how broken the 'markets' truly are. To summarize: no depth in the Treasury market, a duration mismatched powder keg in "long-term" mutual funds thanks to the fact that ZIRP has destroyed money market yields causing investors to find a new 'cash substitute,' and a magically shrinking repo market in the wake of new regulations ironically meant to promote stability.
The War On Cash: Australia Leads The New Age Of Economic Totalitarianism
Submitted by Tyler Durden on 05/04/2015
The new age of Economic Totalitarianism is upon us all. As we warned previously, Australia will be the first to introduce a compulsory tax on savings. This is the ultimate Marxist state for now anyone with spare cash is the enemy of the Conservative Tony Abbott government. The introduction of this tax on money in Australia led by Tony Abbott is the trial balloon for the global economy.
Bill Gross: "This Is All Ending"
Submitted by Tyler Durden on 05/04/2015
“When does our credit based financial system sputter / break down? When investable assets pose too much risk for too little return. Not immediately, but at the margin, credit and stocks begin to be exchanged for figurative and sometimes literal money in a mattress.” We are approaching that point now as bond yields, credit spreads and stock prices have brought financial wealth forward to the point of exhaustion. A rational investor must indeed have a sense of an ending, not another Lehman crash, but a crushof perpetual bull market enthusiasm.
Has The ECB Run Out Of Willing Bonds Sellers On The Long End?
Submitted by Tyler Durden on 05/04/2015
While the ECB is representing that it has no limitations on total monthly volume purchases, it is suddenly finding itself forced to buy increasingly more bonds on the short end. Which brings up the question: is this due to the specific shift in the purchasing strategy of the ECB, or has the ECB simply run out of bond sellers on the long end and as a result is forced to buy ever shorter-maturity paper?
(Our thanks to www.zerohedge.com for the above headlines)
Gold Short term
In what has been perhaps the choppiest trend we’ve seen in any month, April came to an end on Thursday night. Since the Friday low (May 1st) at 1168, prices have bounced back to the 1190 area. The key remains the 1172-1192 yearly pivot price range with 1182 as the 2014 close. As long as we don’t close below 1163-1172 the potential to rally back to 1222 could once again be developing. Any close below 1172 will negate the outlook. Resistance is 1192-1195 and then 1205-1209. Support is the 1173-1178 area. In summary, we’ll favor higher as long as we don’t close below 1172.
Cycles
The next short term cycle is due now (May 3rd (plus or minus 72 hours) and odds favor we are making a low between last Friday and Wednesday of this week. From there odds favor we move higher to mid-month.
Silver
Silver has not made a new weekly low as gold did last Friday and is providing a divergence that helps the short term favored upside. Just keep in mind we are very choppy and overlapping and there is nothing to say we can’t keep reversing back and forth. Resistance is the 16.87-17.05 area and support is 16.09-16.17. Additional support is 15.50-15.75.
 
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