Hi all. Don't post often, but here's my thoughts.

First of all (and this is just my opinion offered for consideration) the purpose of the short the juniors/long the majors trade is multi-faceted.

In no particular order, it has been to squeeze the juniors operational funding making them vulnerable to predatory JV loan agreements or various other consessions predatory in nature. Also, it squeezes out all but the strongest of hands who cough up their shares in search of higher returns. These shares are bought not to cover, but to be accumulated at bargain prices soas to influence voting. The people buying these shares are not the ones doing the short/long trade, but they are the ones telling them to continue and for how long. These folks, let's say... The Carlyle Group amongst others, have been accumulating for the entire time this trade has been in place. 5 years or so, with the end game of controling as much of the real, future supply of gold and commodities worldwide. They know dam well there is no gold above ground anymore, because they already have most of it anyways. CB's have been selling to them for years.

I believe the shorts will attempt to unwind their trade in the months after the Jan-Feb high into June. Many will blow up anyways, and not all will succeed at a cover. They will be tossed to the wind by their real bosses, and those who don't have their shares certificated could find themselves in harms way.

By that time, there will be a media mania over gold, and a nice bull-trap in the HUI for the picking. The market can then drag everything down into Armstrongs' support and create a nice capitulation bear-trap.

We have yet to really see a consolidation feeding frenzy of the juniors by the majors. Many JV operations will have their balance sheets decimated by these higher prices (as per Sinclairs' warning), which is one of the reasons it has been so important to self-fund operations if you don't want to get eaten.

Then go long PM's and commodities/short treasuries and use the media ala PIGS to knock over one US state after another to push them to their extremes.

Big money never thinks in terms of weeks.

Cheers.