Jeff Kern:
Any time the 92-96 index buys on the SKI Path of Trades there is the possibility of a true bull market. This buy signal was quite unusual and the following will appear to be complicated. Therefore, it can be signaling a further rise, but it should NOT be a true bull market that yields 100%-500% gains during the next year.

Conclusion

There is the potential for a continuing rise in the gold stocks due to this past Thursday’s generation of a master 92-96 index buy signal. But this should not be the start of a true SKI bull market. What matters is the sell stop: A new 92-96 index sell signal. That would occur when USERX declines to below the green line on this complimentary SKI chart.

You should be able to see that the green line remains rather flat for a lengthy period of time. In other words, if one is long the gold stocks from this past Thursday-Friday’s buy signal, this rise will need to continue for months in order for the sell-stop to be activated at a profit. That CAN occur here. As other technicians have reported, this past week’s Commitment of Traders Report was unusually bullish. Just do not remain long if the 92-96 index’s sell-stop is activated.

http://www.321gold.com/editorials/kern/current.html