HVU.TO Monthly

One place nobody will look is the monthly chart in HVU.TO. It will give the proper perspective on volatility should there be a protracted episode of volatility in the equity markets. You can enter any volatility based ETF product, and come up with very similar results.

The irony would be that the rush into leveraged volatility products, which are the most heavily shorted equity in the markets, would be the Achilles heel of the equity rally since 2009. Gold futures were at one time the most heavily shorted financial product on the markets, where the major miners all held billions in hedges which soon became a liability. The bullion banks themselves are much less active in their price fixing schemes.

To give you an idea of why the leveraged ETF chart looks so strange in terms of numbers, Horizons Betapro reverse split the ETF four times, each time a 10:1 reverse spilt. That means the leverage against the product goes to spectacular levels.

The volume on HVU.TO was over 9 m. units Friday, where the float only has 879,000.

http://schrts.co/vIm5pk

$IRX Weekly

One indece that did NOT move on Friday was the $IRX. Very possibly if this interest rate achieves close enough to .50%, we'll be seeing a quarter point rate hike.

http://schrts.co/SXgMle

$TNX:!PRII Monthly

The trend is down for this indicator, and will be resumed once interest rates begin their decline again against a basket of commodities prices. Normally the rule in an equity rout would be lower interest rates overall, but this can be seen as a flattening of the yield curve should short term rates see their almost futile adjustment.

I'm thinking this means a decline in the $U.S.

http://schrts.co/34BTdC

Comparable - RMX.TO

Notable to the discussion on debt Defeasement is the comparable RMX.TO. They have made going concern statements because they will likely restructure under the BIA. Now, I haven't gone through the balance sheet in an attempt to determine whether they have a pro-forma insolvency. But this company is making moves comparably similar to GBN.

What do I think will happen with GBN? The gold price will have to complete its correction before a revocation order can be contemplated, and they have to 'get it in gear'(rather than give people the gears) before the end of calendar 2016. GBN may have the advantage in that the shareholder count is tiny and the majority absolute.

http://www.rubiconminerals.com/News/News/Details/2016/Rubicon-Minerals-Announces-Filing-of-Its-Second-Quarter-2016-Financial-Statements/default.aspx

-F6