Ultra-crap junk financing is still available but, as I have been discussing over the last few months, dealers have been standing down and clearing out. Trade desks are now manned by order takers, who are not selling out of inventory. If a match is lit, look out below; the market is trading thin.
With private funding drying out and Aunt Millie’s pension funds already deep into the water, what is holding things up? Some hypothesize, and it makes sense to me, that a hidden Fed swap line is being used to support the U.S. bond market. I submit that deep-state operatives run this. The captured money manager stooges are already all in. Since free markets have been completely turned over to this manipulation, it leaves an inherently unstable, thin situation.
U.S. companies authorized $64 billion in stock buybacks last month, an 18% drop from last year’s amount. Companies that heavily repurchase their own shares also haven’t seen their stocks get the same lift they enjoyed in the past.
Volume in the GLD, GDXJ and GDX has dried up completely. On Friday at one point, for about 10 minutes as I was watching the tape only a few, sporadic, 100-share orders were going off. Look at the GDX chart volume for the last two days. I think we have a situation where shorts have piled into the shares in last 10 weeks, and now market depth is gone. This is not liquidation. To me, it represents short selling exhaustion. As such, if real buying volume enters the market, the result could be explosive. In the second, chart Morris Hubbart compares current money flows in gold to the 2009 launch pad.
source; Morris Hubbart
The winner of India’s election will be announced Friday, May 16. The challenger, Narendra Modi, is expected to win, so the only question is whether there will be a hung parliament; or can he easily form a new government. In following the gold community, there is a total lack of mention of what this means. But I think a look at the following chart is the tell. If the restrictions and tariffs are removed and India’s gold imports get back to normal, the resulting demand in an already physically scare market will be considerable: 50, 60, 70 or even a catch up of 80+ tonnes a month.
In addition, there is increased talk of a new ECB QE program.
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