The month's not over - there's still Halloween, but I doubt the ghouls can scare this market any more. I think it's safe to say that October has once again justified its reputation as a bear killer. And this one has been truly amazing. I don't recall seeing a white monthly candle on the total market index as large as this one - ever! Still not enough to generate a MACD buy signal (after September's sell signal), but a positive November could do the trick. Whipsaws on the monthly MACD are extremely rare – but right now, it looks like that will happen.

Pretty clear that the year end rally is well under way. Problem is, it ran so fast that a lot of people couldn't catch it. It's possible the bulk of it is already over – at least for the US markets. US markets are approaching the trading range before the mini-crash in Aug – so they will soon be faced with a strong band of resistance. Doesn't mean the rally won't continue, just that it's likely to be more of an upward grind than the sudden jump we just had. I suspect US markets will finish the year near the top of the range, possibly even make new marginal highs. The Qs are almost there already.

However, there's good news for those who have so far missed the rally. Lots of individual US stocks are just now breaking out of a 2-3 month base, with room to run. Even better, Canadian markets have lagged and could easily play catch up. I don't expect Venture to get back to the top of this year's range – unlike US markets, the Venture suffered a severe bear market, so there is just too much distance to cover. Nevertheless, it could easily get back to 1950 – 2050, a healthy move from here. There are still a large number of junior resource stocks that are just now trying to get up off the floor – lots of things to buy for a Nov-Jan trade.