Yes, Toto - it's started. Just about every market and sector had a strong follow through week - coming on the heels of a strong reversal week. Technology (especially big caps) had an amazing couple of weeks. The Qs are now just a stone's throw from a new high!

So where does that leave junior resources? Badly beaten up, but the lows are in, and they are poised for a nice rally into January. Because this rally started later than last year's, and there is more overhead resistance, it won't run as far - but it's still worth playing.

For now I'm sticking with beat up high beta stocks that have potential of doubling by January - and selling into the usual new year euphoria.

I no longer think a serious test of the recent lows is likely - at worst, a 50% pullback of the gains from the last 2 weeks.

That said, because of the big moves the last couple of weeks, markets are short term overbought. Also, many indexes are at the top of the 2 month range and may need a rest before moving higher. So a consolidation or pullback seems likely next week.