I’ll concede that the complex is poised to rally, although I think February is going to be capped.  I think the largest part of any rally will occur after February based on the daily Ichimoku cloud for the HUI.

Keep in mind I am 100% long (majority in silver miners), but at this point I don’t see any sort of imminent breakout for silver above $30.  While this rally could certainly be a very healthy percentage, I think we will be right back below today’s level (probably around the $24 level) at some point within the next few months (at the next intermediate cycle low).  I think the candle silver printed a couple of weeks ago strongly suggests that, and I think we will just be chewing up time in a range until this summer and perhaps into the fall.

Maybe we get a very rapid move in the HUI back to the 312 resistance, but I don’t think it can penetrate above cloud resistance until the first week of March.  A classic double bottom?  Maybe.  If you don’t already have a position, now is as good a time as any to take one, I am just not sure if we are ready for a moonshot or even a break above 380 until later this year.

I could absolutely be wrong, I am just telling you what I am expecting.