$USB daily

For the last while, I feel as if I had been nursing some sort of family calamity since the share price is so depressed in GBN.V.

But the more I read about other gold producers that have missed guidance and continue to massively dilute, and the more I look at my own rationale for accumlating the stock, all that's really need is a higher gold price.

In the last couple of weeks we are seeing a major price breakdown of the long-dated treasury bond price. Mostly people believe that central banks will step up their purchases and keep the ball rolling. One thing most forget is that central bankers rarely make any sort of pre-emptive moves and will only act according to the market.

But as we saw around January, central banks did step in a buy bonds after a sell-off. So its an open question whether bond prices will remain firm or soften. Certainly other types of bond markets have sold off, such as corporates or emerging markets.

The inverse correlation that GBN.V has with the long dated treasury bond price has broken down by now on the daily chart, and you might anticipate either an announcement of central bank purchases of bonds to be imminent, or that they will sell of precipitously.

Certainly we have passed the 'buy point' based on several intermarket indications, such as the inverse correlation long dated treasury prices on a monthly basis, the gold/silver ratio, and the fact that the TLT appears to be giving up the ghost.

GBN.V has stood to gain in the past from such moves, and a short covering panic in the shares is at least a week overdue.

We were in a similar situation last March, where we saw a couple of short-covering panics, and then the bond market rose spectacularily. In theory, GBN.V shares should be rocketing right now, though I expect traders are awaiting any announcement that the FED is there to fill their pockets and buy bonds.

supersize

http://scharts.co/RhIe9R

Over-Allotment On The Bid

There was an over-allotment on the bid for GBN.V shares, which you never see. But given that the banks now own the stock exchange, and that they are overwhelming short and leveraged against GBN.V, they are allowing it to occur.

If there's an overallotment on the bid at any time, the share price should settle higher, but instead it was allowed to sell.

The max it can go to is 999.

This happened on Tuesday.

$IRX Daily

The one chart that bears very close watching is the IRX. For some reason this data has the declmal point in the wrong place. When I complained to stockcharts.com, they accused me of using the data for another purpose when I was merely trying to point out the inconsistency.

It's a perfect storm for gold and heavily shorted gold miners when short term rates are falling and long term rates are rising.

supersize

http://scharts.co/OvEFH8