Down Tick Rule

Down Tick Rule to be repealed as of September, 2012. Look for a lot of anonymous trades.

"IIROC's proposals would see the repeal of the tick test and introduce the requirement that all short sales be marked as such. However, orders from accounts meeting specific requirements (including certain arbitrage and institutional accounts) would qualify for a "short-marking exempt" designation."

Canadain Securities Law - Stikeman, Elliot

RBC Buys Dexia

Better to short the housing market/or use dynamic hedging strategies against non-yielding commodities equities.

Bloomberg

$IRX Monthly

One thing I have tried to point out to stockcharts.com is that the decimal points on their IRX charts are one to the right. Yields are nowhere near indicated on the chart. Just the same, you can see how gold miners have declined against gold with the decline in interest rates.

This puzzling attribute can be resolved by looking at Canadian selected bond yields, which have not declined to the extent that American bond yields have. Once Canadian bond yields decline another 50 - 75 basis points, then gold miners aught to be showing progressive increases in internal rates of return. This can only effectively occur once the housing asset price bubble bursts, and the financial sector be directly affected, especially bank stocks. (take a peek at RY or TD over the same period)

http://www.bankofcanada.ca/rates/interest-rates/t-bill-yields/

Most gold miners in North America are listed on Canadian stock exchanges, so it would be a propos for mining companies to chronically underperform gold, right up until the point that yields finally go below 0.5%. That is, IN CANADA.

A simple way to express that is that internal rates of return are falling behind inflation/currency depreciation more progressively as rates decline. Gold miners are the exception, but people don't know that yet.

supersize: http://www.flickr.com/photos/11747277@N07/6907402342/sizes/l/in/photostream/

stockcharts.com

-F6