FSJG Index™ Weekly Review
by Frank Barbera
September 9, 2005

The Financial Sense Junior Gold (FSJG) Index closed this week at 155.50, up +2.59 index points (or  +1.69%) from last week's close of 152.91. The 50-day average closed at 151.35 with the 200-day moving average at 155.99.

On a longer term basis, the FS Junior Gold Index is attempting to break out above its medium term declining tops line, which is closed this week at a reading of precisely 158.92. That Trendline is declining around .20 cents per day. Overall, the recent action of the FSJG Index suggests a protracted basing period, which is preparing for a more aggressive advance.

Thus far the Small Cap Gold Stocks are still lagging behind the High Cap Seniors, which dominate the major indices such as the XAU and the HUI.

In the next chart, we see the FSJG Index relative strength graph versus the majors showing that we have yet to see a definitive turn in the small cap sector of the market.

However, the Relative Strength weakness in Small Cap Junior Golds may be coming to a close shortly, as several technical gauges are showing these stocks as still substantially oversold.

Below: The Medium Term ARMS Index for the FSJG Index is presently above 1.30 with a reading this week of 1.35. A reading above 1.30 very often delineates an oversold market. In addition, this week the Summation Index gauge for Junior Golds re-crossed its 12-day moving average signal line to the upside, which is usually a near-term bullish indication.

*Please note that the individual companies in this index are proprietary and will not be disclosed due to compliance and regulatory issues resulting from the relationship of FinancialSense.com, Puplava Financial Services, Inc., Registered Investment Advisor and Puplava Securities, Inc. Member Firm FINRA/SIPC.