TLT weekly

That bond yields must perforce rise because you declare it to be so doesn't mean that interest rates must necessarily rise. JNK has been crushed in the last week, and LQD has come off. But the one place where you need a breakout for gold prices to advance would be in long-dated treasuries.

Given gold's low volatility, you have to expect that dependence on interest rates lowering in a commodities 'rout'(copper actually advanced) would mean low volatility advances. So a slow melt-up to new highs eventually.

People are looking for a mania, but this might be too optimistic, since interest rates were easily below inflation in the '70's, but in the 2005 period onwards, inflation has been moderating on lower interest rates. At the very least, TLT should be rallying much like the beginning of 2014.

The spread between TLT and $Gold should narrow:

http://schrts.co/ilm1CC

$TNX:!PRII Weekly

Switching the log scale chart to a linear scale chart gives you a slightly better perspective on the agonized, protracted gold price correction in $US. Long-only physical bullion ETFs were vulnerable to corrections as their holders are making emotional bets.

If yields are meant to decline and commodities prices can be pushed no further, then this indicator will finally reverse. For all intensive purposes the monthly chart has seen the high in RSI, leading one to believe in the impending reversal. The weekly chart provides a little better detail:

http://schrts.co/nG2izA

Notes: The company will never precede announcements by 'The Fed' with any sort of news. But in light of insiders settling their shorts in volume says that there's some light at the end of the tunnel.

Just how they're going to emerge as a strong player in the field when they've been anxious to stuff their jeans and 'make off' with the proceeds when it would have been more business-like to pay a dividend as they are shareholders themselves remains an open question.

The takeaway is that the insiders have impeccable timing, but are more desirous of sowing their wild oats and absconding with their self-congratulatory rewards than actually running their business.

Nothing new in the Satellite photos, so the information there has fallen behind. But you can be absolutely certain that they're not under 'care and maintenance.'

-F6