Daily GBN.V Chart - Elder Impulse System

Once again the Slope Of Hope provides some excellent technical points with which you can use to analyze the GBN.V daily chart and come up with a point of view on the status of the stock. Most remember the flash crash as a non-event, but this was an important test case of how the market would react in a similar scenario.

Things are not much different in terms of the markets, so we can assume that the same scenario is going to unfold, though in slower motion. One thing that caught people by surprise was the sudden sell off and recovery of GBN.V stock. This was an extreme attempt to naked short the stock into oblivion. But, if we look at the GBN.V through the Elder Impulse System, we can see there was no change in volatility in the stock.

What that indicates is that GBN.V is likely to perform well during the next slow motion flash crash, as it had on May 6, and that naked shorting of the stock was completely in the wrong, as it only resulted in a back-test of the latest breakout, which was to be expected. The breakout is yet to occur.

Compare the posting on the Slope Of Hope using average true range and volatility scales on the S&P with those of GBN.V. The difference here is the average true range is much higher, meaning anyone selling shares without first owning them or borrowing any for a legitimate short is now on the hook, whereas the bears should be very well positioned in the S&P:

Slope Of Hope posting here

supersize: http://www.flickr.com/photos/11747277@N07/5048081290/sizes/l/in/photostream/

stockcharts.com

The conclusion that you can draw by making comparisons here is that GBN.V stock is set for a rally while the S&P is continuing in a major corrective phase.

Silver/Gold Ratio

The silver/gold ratio is a good indicator of a top, just that you have to pick and choose when its really indicating a turnaround. Something its been doing since 1998 is "double topping" when indicating a major turnaround, so we may actually be seeing an interim double-top here with the advance of the silver price vs. the gold price.

Mind you, the technicals all point to a breakout rally. Should this be successful, this would be an indicator that inflation is taking hold. But just the same, a reversal is in order. We were very much in the same position as October of 2009, where a reversal in the markets should have taken hold, though the discount rate remained steady throughout the year, with several downdips. All of the stimulus money is propping up the corporate bond sector, but this can't go on indefinitely. The risks in the commercial banking sector are apparent, that taxpayer money will not go on to buy lamborghinis for high yield moguls while people are losing their jobs, pensions, houses.

I believe the market will correct this imbalance with negative interest rates, which has yet to occur.

supersize: http://www.flickr.com/photos/11747277@N07/5047547887/sizes/l/in/photostream/

stockcharts.com

Bingo Deposit

I thought it would be a good idea to re-post the schematic of the Bingo deposit from 2008, which is now somewhat dated, but gives you a very good idea of how this mine should grow. We start near surface with a roughly 100m. high grade portion, but then fills out to a 250m. overall underground section. What should occur as they continue to develop the mine, is that wide cross sections of the type you see in the Pickle Crow mine(which is a strong comparable) or Lakeshore Gold's project should appear. (what are the chances that most of the deposit will show high grade eventually? There just hasn't been a whole heck of a lot of drilling to these depths. It will be mine, find some more. Mine, find some more.)

This mine should be very consistent in its grade and geological disposition to great depth. Recheck the photos to keep up on developments, as anything the company has posted to the website is done-deal. They would be onto the next step, which is probably running the mill, though we have yet to see the return and installation of the crusher.

I'm wondering why they don't put a cover on the spare motor, as the photo for the ball mill appears very dusty. It seems likely they will have a second ball mill of the same type they have now for next year, which will finally upgrade the mill.

Longerterm, they will need a much larger capacity to accommodate various deposits.

supersize: http://www.flickr.com/photos/11747277@N07/5048212432/sizes/l/in/photostream/

presentation source

Bralorne

Bralorne Gold Mines drills a near 6% gold interval in their narrow vein project:

marketwatch

Centerra

Centerra hit by a strike at Kumtor

Globe

Still no news on Taseko Mines' Prosperity project, whether the parliamentary commission may grant or refuse them a tailings impoundment area license. If the conswervatives had half a brain, they would award GBN.V their tailings impoundment area license and they would save face.

Treasury Bill Rates In Canada

Three-month treasury bill rates are trending below the policy rate. A decline in the short term rate here would signal a market rout at the same time as forcing a lot of sellers of GBN.V stock to settle their naked short by buying back in.

TREASURY BILLS: 3 MONTH Previous data
GRAPH PERIOD: 30 Sep 2009 - 29 Sep 2010	25 Aug 2010 0.62 1 Sep 2010 0.70 8 Sep 2010 0.87 15 Sep 2010 0.91 22 Sep 2010 0.90 29 Sep 2010 0.87

source: http://www.bankofcanada.ca/en/rates/tbill.html

-F6