TLT Weekly

As I have maintained, a sell-off in the bond markets will mean a rally in GBN.V shares. But there's something in the way, GBN.V shares have not responded in the way it should and we are seeing capricious pricing for almost a year.

This is because with abolishing the no-down-tick rule in 2011, traders have resorted to selling the miner, and buying DUST.

I speculate, however, that since U.S. treasury markets are selling off, and that they serve as an appropriate proxy for Canadian bond markets, that once bond prices decline below their March 2012 low, that this will likely trigger a buy-in for gold mining shares. What might also occur is a sell-off in DUST, which will trigger a reversal of trade.

Look at the hourly trade in DUST, and compare GBN.V share prices on hourly moves.

We're not far off.

http://ow.ly/mez25

http://scharts.co/QbPCQ1

-F6