My indicators have triggered a bottoming alert for the US markets. This suggests a selling climax should occur early next week, assuming we are still in a bull market (my indicators do not work in bear markets). Exactly how this will come about is hard to say – a lot depends on the weekend news flow out of Europe. Best guess is a reversal day on Monday or Tuesday followed by a sharp 1-2 week bounce. My favorite scenario is a down day Monday followed by a panic gap down on Tuesday. That would be an ideal setup for day trading one of the triple bull etfs. These are dreadful for holding, but great for day trading.

The market's reaction to Friday's weak unemployment report (which increases the odds of QE3) confirms the theory that the PM sector is heavily dependent on QE, much more than other sectors. Most stocks are economically dependent, but PMs are QE dependent. It makes sense – there is no real economic value in digging holes in the ground to extract a metal that ultimately winds up in underground vaults. Regardless, gold stocks really do look good right here. GDX broke the downtrend last week & GDXJ did so on Friday – all on good volume.

As expected, gold stocks appear to be lending a hand to the Venture. While Venture has yet to break its downtrend or show good volume, it may only be a matter of time. Although it's always better if small stocks lead the charge, it's common for big caps to move first, with the smaller stuff following behind. If the gold stocks do continue their move, Venture should follow. Still, I'm staying with the larger, more liquid stocks for now – I hate getting trapped in illiquid stuff when it comes time to sell. I haven't given up on the juniors, I just want to wait for the real fun to begin.