GBN.V Reciprocated

The reciprocated chart of GBN.V is showing slightly different technicals from the weekly chart, but one consideration is that GBN.V share prices have now caught up with the bond markets.

Considering that GBN.V share prices have caught up with bond markets that might be forming a right shoulder, then the reciprocated chart is suggesting that GBN.V is fully priced, inversely correlated with bond markets.

Can it go lower? A 1/2¢ move down in GBN.V shares now will place the inverse price well beyond bond market valuations. Daily trade appears to be focussed on keeping the price low at all costs.

http://scharts.co/ZRkUNV

"Finally we are starting to see evidence that a breakdown and potentially violent plunge may be imminent in the US Treasury markets. With the shameless and relentless abuse heaped upon this market by the Fed and the US government, it is only surprising that it has held up as long as it has. Anyone holding these instruments at this time, which have very little potential for capital appreciation after their prolonged gains, yield next to nothing and carry huge risk of heavy capital loss, is intellectually bankrupt and a moron, although we must recognize that a lot of the buying of Treasuries is undertaken by those who will not pick up the tab for the loss personally if they lose value. Of all the sectors to short, this must be the one."

Safe Haven

Safe to say that certain failures to deliver put JP Morgan on the hook for billions of dollars of government treasury bonds with a negative carry, which may have been the impetus for selling all of their custodial gold accounts.

It all started with 'The Whale.'

http://scharts.co/YRwPBp

-F6