I went through the same exercise yesterday comparing the TSE/ DOW and Nasdaq .... I also compared all the comodities and with the exception of NI which is undervalued, minimal inventory most comodities are returning excellent profits for their producers....

What is the contrasting picture?

The venture exchange is trading at it's 3 year lows again.... and most small producers are trading as if gold was at $350 / oz.

WHY?

I surmised it is the lack of liquidity.... total dollars in the sector... the result of the Canadian dollar suddenly reaching parity with the US dollar.... The toper to $1.10 was the straw that broke the trend of foreign investors reinvesting in the Canadian jr's... I think many US investors saw the Venture stocks trading near their peaks..... and the Cnd dollar trading near a peak .... Thus this double double provided the oportunity to step out with a windfall profit... The jr market has endured multiple other events since then.... trading at lower highes and testing the 2300 level several times of late.

Thie has been consolidation time.... and we are now due for a major breakout to the upside. Summer rally will start soon, and once the stampeed is underway, it will gain momentum.

What is needed are a few great area plays to get things going... and those are happening over the past few weeks.... Potash, coal and oil gaining a lot of market attention...

With oiul retrencing a bit I think the optomisum will return and that will be the catilist to start the stampeed.... The Cnd dollar droping to the .90 level would also draw foreign cash into the sector....The ducks are geting organized and will soon be all lined up.

JMHO