Has the venture market possibly bottomed out?

The overall markets have been unstable and searching for a direction. There are a lot of cash on the sideline waiting for improvement in leadership to show us investors more clarity on the route of the economies.

The venture stocks have been on a downward trend since the beginning of the year 2011. The TSX Venture Composite Index (CDNX) had nearly retraced 50%, second to the larget correction ever. Below I posted a 1 year CDNX chart and a 5 year CDNX chart.



1 year CDNX daily chart

5 years CDNX weekly chart

In the beginning of October 2011, the CDNX hit the year low and bounced back up which created a V-shaped reversal. Back in history, a V-shaped reversal was a reliable charting signal for a market trend reversal. (Refer to the 1 year CDNX daily chart)

There are a lot of undervalued venture stocks that are overlooked. They can be going into the production stage, advance development stage, feasibility stage, etc. but whatever stage they are in, if they are undervalued, it can temp the larger cap companies who are looking to expand or running low on resources to swallow them whole or become joint partnerships.

You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses.