Daily Chart Ichimoku Cloud

When all of the technicals are negative in the chart, then you have to rely on the fundamentals for direction.

The downtrend line set from the peak in December was tested yesterday but could very well indicate the direction of trend going forward. There is so much technical damage, that it might take some time to recover from the 30¢ low.

But this also suggest that the series of truncated waves are largely the result of price arbitrage in the stock. The prognosis is that this kind of effort is more likely to collapse as time wears on. The market for its part is perhaps suggesting that 30¢ is our 1P/E, which could be indicating 12g/t @700tpd.

The main reason why there should be a shift in the pricing of the stock is due to negative interest rates on the 3mo. U.S. Treasury Bill. The article on Arbitrage Pricing Theory suggest that short term interest rates are a determinant in the outcome of pricing.

Higher gold prices are assumed to bring in buyers, but we haven't exactly seen that just yet. Still, the gold price must have breached a psychological limit by now, where even the naysayers are wrapping their heads around the bull market.

http://www.flickr.com/photos/11747277@N07/5936476717/sizes/l/in/photostream/

stockcharts.com

http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/

-F6