$SPTMN Weekly

The chart to watch this week was the mining index on the TSX. Mining stocks rallied on the basis that commodities didn't crash since major indeces rallied.

Very aggressive crossover of the technicals.

http://schrts.co/otnn2C

!PRII:!PRDI Monthly

We still have some technical work to do before this indicator recovers from multi-generational lows. Even if mining stocks stayed where they are through more commodities volatility, major declines in the indeces will carry the recovery, as Pring's ratio indicates inflation, rather than deflation.

(ex: if commodities prices stay where they are, then there's been more inflation than anyone anticipated, but not hyperinflation. It's possible to have asset prices in a bubble and also have deflation.)

As a matter of curiosity, the gold/silver ratio is suggesting we are into a howling recession. In the mining stocks, we are. But the low is in.

http://schrts.co/6NpRNF

$TNX:!PRII Weekly

Which brings us to our next indicator, which has so far given us reason to believe the low was in for gold prices! and for mining stock.

The indication here is that the gold price rally in $US is meant to continue. The 89-week EMA was added, since we are already at the 24-week EMA in very short order. A pause might occur, but the technicals from various pundits have not been true to form as there's been a fundamental shift, so gold prices rally in defiance of pessimistic technical indicators.

A commodities rally means also that the $CAD will rally, meaning the $CAD gold price will lag developments in the $US dollar price advance. I fully expect continued volatility in daily commodities prices of 5%.

http://schrts.co/tQJkHW

Conclusion: The management of GBN.V have had it land right in their lap, and should be motivated to run a business rather than giving people the business.

-F6