TLT Monthly

-I mean James Brown, of course. Glad to see we're on the same page, then.

An interesting after effect of correlations between TLT and the gold spot price, is that once gold price correlate strongly with TLT, there is a deterioration in the correlation, mostly due to a correction the gold price (or markets in general), with a gold price rally for some time during this correlation breakdown.

And this has been true over time the last two times this occurred.

As for higher interest rates, I think it has been proven sufficiently that they are not in the cards.

This looks like a 'trap' for higher gold prices.

http://scharts.co/1hrKiCY

via INO.com - Dec. 2014/Jun 2020 Spread

This spread trade has not declined during gold spot price predations, and is supposedly the most actively traded gold futures contract due to the fact that a new gold exchange is opening soon in Shanghai, according to Bloomberg.

http://quotes.ino.com/charting/index.html?s=NYMEX_GC.Z14_Z19.E&t=l&a=0&w=1&v=dmax

We are clearly having inflation during deflation, most indoubitably:

http://www.ino.com/blog/2014/08/deflationary-straw-man/#.U_ivpVh0yUk

NOW LOOK HERE!

A sign of the top in the markets, although we've had 'signs' 'bells' 'whistles' 'tops' and 'bottoms' enough to choke a horse would be a turn in the momentum on the ADX in the airline index.

Pilots are borrowing money to buy into airline stocks.

Ok, so how about this. Westjet pilots had turned down their contract last year, even though they have no union. Some of them are apparently cross-eyed. And wouldn't you know, their stock price is higher on the announcement of an expansion.

There are always one of two runways.

If there's any industry in a viscious cycle since 1998, it has to be this one.

http://scharts.co/1gM8znC

$CDW:$Gold Monthly

Airline stocks should decline with the decline in oil prices. But we have been waiting for years on the outcome of an oil price decline.

A decline the the Canadian dollar should happen as well, as long as bond market rates remain below those of the U.S.

A perfect storm is in order for airline stocks should their purchasing power decline since they hedged their fuel just below market for years to come, due to become above market, and that should be not too long from now.

http://scharts.co/1p2ktTC

via Advisor Perspectives - dshort

The Q-ratio is analogous to the airline index:

Advisor Perspectives Blog

-F6