Should you be careful about picking an intelligent entry point? OF COURSE. Only an amateur just jumps in any old place. That almost guarantees that you will do it at the worst possible moment (after a big collapse) and then you could see a 38.2% or even 50% retracement. Imagine jumping in short and then quickly finding yourself down by 50%. Most people would sell for sure if they just woke up to find this one day. So in order to avoid getting conned out of your cash like that, buy the dip, don't chase the peak.
What will be interesting in this regard is how the market plays out tomorrow. Generally the market shows its respect for such strong support trend lines as this 15 year long one that is currently in place on the DJIA. Maybe a significant bounce will occur before it comes smashing back through. While I have mentioned the general concept of relaxing stops, this support line demands our attention. Maybe this is where the vee 2nd begins moving up. After all, metals and miners are overdue for a move up and they have been trading in phase with the broader markets. IFF the DJIA gets a couple percent bump off of this line, I'll look to trade into the strength of JNUG. Note: JNUG might have to go back down to ~$9 before it can break out; it looks like a 5-3-5 retracement is possibly unfolding. This is not advice but IF you see that, jump on it. If the A wave was > 40% the C wave should be similarly impressive.If, however, the DJIA (sorry for jumping around...) gaps down below that line tomorrow, buy the gap (also not advice, I reiterate that I don't give fee trading advice) because there will be more southing as the market freaks out over the Paradise Lost.
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