It seems the stock market's multi-month funk is finally ending on a combination of central bank stimulus hopes, a better-than-expected​ payroll report and word that beleaguered brokerage Knight Capital (KCG) has received access to capital and will live to fight after Wednesday's disastrous computer trading system malfunction.

The NYSE Composite is on track to challenge highs hit earlier this year. I've been saying for weeks that this was a perfect time for greed, not fear, as investors have pulled cash out of the market. Now the upside is happening. Here's how to play it, with a focus on gold and silver.

Everywhere you look, haven assets are pulling back while risky assets are surging. Treasury bonds are suffering as the iShares 20+ Year Treasury (TLT) threatens to fall below its 50-day moving average for the first time since March. The Japanese yen and the U.S. dollar are under pressure. The CBOE Volatility Index, Wall Street's fear gauge, has returned to its mid-July lows as options traders worry less and less about downside risk. 

On the other hand, cyclical, economically sensitive stocks are moving higher relative to the overall market. The euro is rebounding. Breadth is strong as a wide swath of the market participates in the move higher. And inflation expectations, a proxy for growth expectations, are blasting higher at a rate not seen since January. 

I've been telling my readers and newsletter subscribers to focus on gold, silver and the related mining stocks, and I still think they are the first areas investors should focus on.

The bulls showed their hand during the market pullbacks Wednesday and Thursday when, in the wake of initial disappointment over the Federal Reserve and European Central Bank policy announcements, gold and silver pulled back while small, nimble mining stocks were buoyant.

This was a sign buyers were quietly building positions in the area, represented by the Market Vectors Junior Gold Miners (GDXJ). Now the GDXJ and the stocks it is exposed to are poised to move out of a long downtrend in a big way. I'm adding GDXJ to my Edge Letter Sample Portfolio as a result, combining it with existing precious metals exposure, including the VelocityShares 3x Silver (USLV), Endeavour Silver (EXK), and First Majestic Silver (AG).

Disclosure: Anthony has recommended GDXJ, USLV, and AG to his newsletter subscribers.

Check out Anthony's investment advisory service The Edge. A two-week free trial has been extended to MSN Money readers. Click here to sign up. Contact Anthony at anthony@edgeletter.c​​​om and follow him on Twitter at @EdgeLetter. You can view his current stock picks here. Feel free to comment below.