US markets have been in correction/consolidation mode for several months now. We are currently in the upper part of the trading range despite an incredibly loud bunch of political & economic doom and gloomers. Only one possible conclusion - markets will break out to the upside. Hard to say exactly when - a lot depends on the jokers in Washington. A default by the US government would cause a short-term mini-panic. If that happens, I'm going to bet the farm on a quick recovery.

As it is, I'm still accumulating junior resource stocks. After a 24% correction, Venture has been outperforming both TSX & US markets for the last month. The selling was washed out a month ago, and now a little buying has started. After breaching the falling wedge downtrend line, it has crept up almost 200 points. The theory of the wedge is that it runs up to the top of the wedge (around the April peak at 2400). I fully expect that to happen. After that, we'll see.

I have even changed my opinion on moose pasture uranium stocks. I've avoided them since the Japanese disaster, but now they are so beat up, I've started to buy them for an extended dead cat bounce. Just as an example, UWE.v - .25 last July, ran to 1.30, then collapsed below .30. I don't expect it to get back to 1.30, but it could easily get to .55-.70, a very nice gain. There are a number of these with similar configurations.

And yes, methinks throwing darts at the juniors is a valid trading strategy right now.