$SPTGD Weekly
We've been awaiting the outcome of a correction in the gold and miners for some time, and it appears we have a bonafide 50% retracement of the move starting last December should the 89-week EMA be tested. If you look back over the long term, corrections in gold mining Indeces always seem to require a test of the moving average. The suggestion is that the EU independence vote gave impetus to markets and interrupted the 'normal' course of events.
Should this test of the 89-week EMA occur, then it would be the first up leg to complete. Select technicals on the chart suggest more travel in store. But overall, the inverse correlation with the gold/silver ratio is the indicator whether a bottom or interim top. It just took far too long to confirm finally, once the top was in, many weeks of unresolved bias.
http://schrts.co/zwmFYa
$TNX:FNV Weekly
In looking around for an immediate substitute for the colossal failure of the Pring's inflation index, I am tempted to use a mining royalty stock as a bellwether for some indication as to whether gold prices will advance. The yield on FNV is about the same as the 10-year treasury bond, which is why I would chose it. The fatal flaw, of course is that the monthly chart would have it that gold prices would be at new highs if the indicator were correct, and that FNV is a little too indexed to gold itself.
Why not just use gold prices as an inflation indicator, therefore? Because gold prices are subject to rise when yields fall below inflation. TNX(or TYX) vs. FNV will give an absolutely good assessment of the turning point.
The reasoning for using FNV woukd be the larger your investment, the lower the yield, and the lower your return.
Until the Pring's index is restored to proper functioning, we are left to our own devices. Of course, you can put in HUC.TO as a yielding Oil ETF(a close facsimile to Pring's)to compare with TNX, but apparently the turn has been in for a couple of weeks already. What to do. You can use Pring's, but the technicals are all out of whack.
http://schrts.co/G5Zz62
http://schrts.co/TWEuYa
$Gold Weekly
A test of the 34-week EMA would not be unusual in the context of a recovering gold price, but a test of the 89-week is not probable.
http://schrts.co/lpCW9q
via BNN.ca - Carbon Taxes
Basically a carbon tax in an attempt to enforce clean technology would result in an unfair blanket royalty tax that penalizes the resource and ag industry.
You can sit at your computer screen and pass gas or have a hissy fit at prices as the markets change complexion emitting harmful greenhouse gasses at the bank you work at in Toronto and you would never have to pay a carbon emissions tax. Then you can get into your v-12 Lamborgini and tear up Queen St. without a second thought, angry that your drug-addled mayor was disgraced, or cover the streets with clouds of your own motorcycle bertussis with nary an environmental qualm.
But a mining company that depends on heavy vehicles to extract ore or an ag company that attempts to replace their machines with carbon friendly electric will first find energy unavailable and second, will never receive tax credits no matter how much they invest in 'friendly' technology. This is Trudeau's royalty tax-grab that targets extraction and food production. You can kiss an export surplus and pipelines good-bye. The irony is that provincial ministers presumably left of the Liberal 'political centre' have walked out of the meeting.
Haven't these industries been subject to astringent enough environmental standards already? Haven't there been unannounced visits by the DFO and whatever bureaucrat fancies punching up a fine for an imaginary infractions enough already?
http://www.bnn.ca/saskatchewan-premier-brad-wall-lashes-out-at-trudeau-s-carbon-tax-betrayal-1.578774
-F6
