GBN.V Reciprocated

In the weekly reciprocated chart for GBN.V, the strong inverse correlation has reached a trough value consistent with other turning points against the TLT denoted by the dashed blue hortizontal line.

That means a turning point is imminent.

As far as the gold/silver ratio is concerned, there is still some room to plunge the stock further, but I believe that we will see a short-lived effort. We are at absolutely extreme levels, more likely an upside captilation then a downside captiulation is set to occur.

There are only 5 business days left before March 29. April 1st, you have to have your taxes filed. That means whatever sell-side brokers have in mind must be carried out in the last few days before they are obliged to report their taxes. Carrying over into the new year with a rising gold price places undue risk on the negative carry in the stock, which is essentially all of the available publicy held float not held by insiders and Sprott.

A 10¢ move in the stock probably means tens of millions of risk for sell side equity swap holders, thus the share price is being held down.

There aught to be one last, ritualistic clobbering of the baby seals. Bloomberg notes that the average reporting date for the Q3 report is March 20.

The fact that the quarterly financial report is now overdue, based on average reporting dates (but not the cut-off date) says that they are going to make the stock look as absolutely atrocious as possible before the end of the month perhaps with a dire quarterly financial report and statements of going concern. (the company is in the habit of reporting Fridays, after the bond market closes, 6PM. If they report financials after close, then likely shenanigans are set to continue.)

Whatever strategy the banks had in mind to control gold prices have migrated into plunging gold stocks. Specific rules such as the 'no-down-tick' rule, which was meant to protect brokers from damaging their financial institutions, now allows them to sell any number of shares without first owning them as long as they hedge with treasuries.

An equity swap with huge financial obligations can influence decision making at the board level. There is only one board member left with all of the responsibility for all of the prior bad decisions.

But I am not seeing much different in the meantime, that the company is being run as a worthless shell company in the minority shareholder interest.

http://scharts.co/Yr3ewe

-F6