At last we have a small taste of the future of our junior shares. We had some great gains this month, since the lows of mid December, and many juniors have at the very least broken out above long downtrends and/or 50 day moving averages...some the 200dma, and some even to new highs...but this big run has left a few of my juniors looking very overbought (on a short-term basis only). We cannot expect, even in the face of news of QE and oil and $ squabbles, for prices to constantly rise without small corrections from time to time.

I like to follow Jeff Kern's SKI gold stocks, because the short, intermediate, and long-term resistance indexes show up possible inflection points and, best of all, because the buy and sell singals make physical sense when taken in the context of recent and long-past market history.

To make a long story short, my feelings of "overbought" in many of my holdings, (AUM at RSI of 73 is only one) seem to tie in with SKI's signals. Next week I am hoping to see a bit of a drop (8-10% maybe), into very strong buying which will be the foundation of a very long-term Bull trend, starting in a weeks or two.

I've taken a few really nice profits this week, and I'm sorry to all if I'm hoping for a small correction to take place next week so that I can load up my truck one last time.

The next couple of weeks might be, I think, the short share holder's last opportunity to cover their short position at "reasonable" prices.

Beyond this "correction", I am wildly bullish for AUM and the rest of our juniors.

All the best,

gildage