Venture Exchange

Our main message this morning is that something is brewing with the Venture Exchange, as it appears to have reached the point of total sellers’ exhaustion…be prepared for a breakout to the upside in the near future as the bulls are regaining control after losing it in March…John’s latest chart shows a weakening bearish trend, a Bollinger Band squeeze, a bullish RSI pattern, and a market that’s trading above its EMA-20 for the first time in several months…while we have yet to see a major buying push, what does appear to have occurred is total sellers’ exhaustion…this is the opposite, of course, of buyers’ exhaustion at a top which is what occurred in early 2011…so there is no better time to be positioned in quality plays than right now in our view…it’s important to note that a rising tide will not lift all boats, however, so we strongly urge you to focus on the companies who have been the most aggressive and successful in this market since the spring and have exploration programs in progress – they will move the most (by far) in the coming weeks…a 20% rise in the Venture, should it occur, will result in 50% to 100% gains and better for numerous stocks…the last several months have been agonizing for many investors but now could be a great time to make some hay…

It seems certain now that selling pressure can no longer drive this market to new lows, and the next major move is to the upside…that’s what the Venture chart is telling us…yesterday’s action was a great example of how the bearish trend continues to weaken dramatically…on a day when Gold, Silver and Copper were all down, in addition to both the Dow and the TSX, the Venture Exchange climbed 6 points to 1197…once it pushes through 1200, the Venture can start to gain some serious traction…that’s the key level it needs to get above at this point…