From an Elliot waver

Another example is the way the Canadian (CDNX) index peaked unexpectedly last May, and almost as if someone turned off a switch, the index began to fall precipitously against the gold price.  The CDNX:Gold ratio recently hit its lowest extreme levels of this decade matching the year 2000, and lower than 2002 when the market tanked heavily.  My theory is the CDNX:Gold ratio bottoming and getting killed recently was a leading indicator of a coming global correction or crash--- whatever you want to call it.  There are not a whole lot of junior bulls out there today, even the biggest names in newsletter writing are trying to cover their butts and avoid the explorers.  GRI for example is telling their clients to sell all of those exploration plays unless they have near term production.  People use nasty terms to describe Doug Casey, Jim Dines, and others they formerly adored.  This is classic sentiment bottoming type behavior. 

So, with the above in mind... a contrarian must figure the junior explorers have bottomed, since nobody loves them and nobody wants to bid.  One should also figure the Dow Jones bottomed already, and will begin another multi year climb to highs amidst the pessimism.  This can’t be can it??  I don’t know, but Elliott Wave patterns are clear to see... and they tell me the BULL is not over.  Can you find a uranium junior bull anywhere right now?  Everybody loved them last May, and they all hate them now. There are quality juniors selling for not a whole lot more than cash per share in the bank.  Gold juniors with real valuable ore in the ground are trading at a fraction of takeover values. I have to admit I’ve been a gold bull since late 2001, so I may be a bit biased about where I would place my bets. Invest where everyone else fears to tread, especially when you can put quantifiable values on what those companies possess.

Taken from:

http://www.stockhouse.com/shfn/editorial.asp?edtid=39045