Scraped nearly 7% from the JDST run today.

After coming back from a business trip last Friday I created a trading plan for today which, as fortune would have it, worked out in my favor.  My mid level view is that after 5 large waves from $43 down to ~16, JNUG is now in an uptrend which should be a-b-c at the very least.  However, the daily fluctuations of JDST and JNUG are so large that it totally pays to day trade the internal bounces of what I believe is the B wave triangle of an a-b-c move which should eventually put JNUG back up at the level of the prior 4th (~$25).

Again, despite the broader uptrend, my model showed that it was JDST's turn for a rally within the triangle.  Since JNUG is the real uptrend right now I will use it as a frame of reference even though it was down over 10% at one point today.  The trading started at red 2.  I suspected that after 5 waves up into blue A that we could have a sideways triangle.  A big indicator for me was that wild volatility into wave 4 of A.  Those vertical lines often precede a sideways triangle of some kind.  In any case, when we did not see a new high at the open on JNUG, I suspected it was reversal day and so I loaded up on JDST very near the open.  I did not catch the exact peak selling point in JDST but I still managed very close to 7 percent on the day.

Just a minute or two before the close I then flipped long into JNUG with the assumption that its downtrend will reverse according to the model below tomorrow.  The reason I think this is that we can see what looks like a B wave triangle in the middle of what I have marked as red 3.  Then comes another triangle lower down which I have to believe is 4 of C.  So while I might not have caught the bottom of 5 of C (it might, for example, go down to the blue line so that C of 3 is longer than A of C),  I suspect that it is near enough the bottom that it was worth holding overnight.

Here is a close up of today's JNUG action.  If tomorrow we see JNUG kiss but unable to break that top resistance line then its back into JDST for me to see if I can catch the ride back down to the throw under.  Assuming I am as lucky to see this play out so nicely as I modeled (time will tell, no advance assumptions are being made, simply setting triggers to bail if the model looks wrong), that throw under should represent a very unique near term JNUG bying opportunity because it means that we should see 5 powerful waves up into the C wave with a target price of $25.  It could go even higher.  For example, the 38.2 fib is $26.28.  Again, with this volatile stock, the only way to play is day by day. It can easily move 30% in a single week.  Because of this volatility it completely supports a trading strategy whereby you just pick a direction based on some logic and then figure out what the stops will be for minimum loss if you picked wrong.  When you are wrong you lose 1-3%.  When right, you gain 7-11% as long as you show the required discipline of using stops.