$USB Monthly

Treasury bond prices in the U.S. have declined after the initial rush into treasuries after Federal Reseve testimony before congress. So the Federal Reserve, despite committed to increasing bond purchases to $85b. U.S. a month is apparently only engaged in purchases for a little over half that amount.

QE4 is yet to be engaged, but very likely this will not occur unless treasury bond prices are in a significant correction and risks for higher interest rates are apparent. As a wild guess, interest rate advances are probably to be kept within a trading band of 100+ or - basis points.

Once people begin to realize that the Federal Reserve cannot be counted on except to stave off a total collapse in treasury bond prices, for example should China or Japan sell their foreign assets for any reason, then shorting the miners and trading long on treasury futures are probably not a recommended way to make money for the forseeable future.

In light of treasury bond prices declining below a certain point, then GBN.V shares aught to react with great immediacy once it begins to dawn on people that the trade for next quarter will not be in treasury futures, especially with the March options expiry.

One place to look in Canadian markets for an equivalent market traded derivative of Canadian Bond futures is: http://tmx.quotemedia.com/futures-quote.php?qm_symbol=/CGB

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$INDU Monthly

An emerging broadening pattern is very apparent in the Dow Jones Industrial Average, which GBN.V investors should be very familiar with. It can take up to two years or more for this pattern to finally fill itself out.

Should the Dow Jones Industrial Average fall below this apparent emerging pattern, then the target for the index is ~3700 points. Thus the target for gold prices in U.S. dollars should be ~$$3700/oz.

It should come as not mystery that an emerging broadening pattern is as a result of derivatives in the markets, when stocks sell off, then treasuries rise. You would perhaps buy stocks as a result of your gains in treasuries futures, and so the cycle begins over.

The indece became truncated at one point, only to resume its upward climb due to the impressive amounts of liquidity and balance sheet expansion of the central bank. It is possible for both treasuries and markets to decline concomittantly.

http://scharts.co/ZGe1TK

-F6