GBN.V Reciprocated Weekly

The GBN.V chart reciprocated shows how closely correlated the reciprocated GBN.V share price is with long dated bond yields.

With the announcement of the obsolescent Operation Twist thursday, any hope of there being a put-options-chain generated price rout in the long bond futures have been dashed. What was probably the most protracted MSM campaign against European banking, combined with succesful bond sales during the week, happened to make any sell-off impossible. However, the minute anything concrete comes out of Europe is bound to flip-side the vinyl and we play the other side of the tune for once.

The strike price of 140 is not that far distant, but this latest twist will definitely set in the delay, its only a matter of how long it will take before a sell-off. All of the put options listed for long bond futures have expired worthless on Friday.

With a price rout in bond prices though, GBN.V shares will rise inexplicably. GBN.V shares are trading at its Net Present Value, if you are willing to discount any price arbitrage.

GBN.V can pay a dividend of 0.8¢/share for Q2 on the net shares issued and outstanding from the net and comprehensive income. of $2.3m.

I had stated that Netolitzky was waiting for a message from God before taking any action. Well - God - can be found on the internet, and he has a very specific message for Ron:

http://www.youtube.com/watch?v=rEkLPfXu6hs

supersize: http://www.flickr.com/photos/11747277@N07/6528928879/sizes/l/in/photostream/

stockcharts.com

Gold Weekly

Gold weekly chart closed near the 34-week EMA, definitely showing a pennant or triangle formation. Something very similar to the previous price decline where MF Global went bankrupt has occurred this week. I personally expect the announcement of another failed commercial bank.

supersize: http://www.flickr.com/photos/11747277@N07/6529157471/sizes/l/in/photostream/

stockcharts.com

Arguments Aboot Gold Lease Rates

A very good argument about how dollar swaps, gold lease rates and an impending price rise is available here:

http://www.zerohedge.com/news/gold-rebounds-over-1600...........

An unbelievably obtuse argument about how gold lease rates signal the end of the bull market in gold:

http://www.bloomberg.com/video/82632058/

-F6