Metails and miners update.

Well, they compressed the spring down on JNUG pretty hard over the past several days and the result was that I got stopped out a few times.  Each stop carries some loss.  Fortunately I picked some entry points which had good (meaning close) stops associated with them.  Even more fortunately, when I would lose 2-3% in a stop market sell, JNUG didn't just go down a few percent more, it went down 10% or 15% or even more.  As discussed in this post, I love to be stopped out like that!  It simply means that the compression is higher and that I will be able to pick up more shares at lower prices.

That strategy paid off nicely today as JNUG opened at ~$9.50, popped to $10.20 and then collapsed in 5 nice waves to $8.43.  As you can see from this TDAmeritrade screen capture I nailed the bottom, missing it by only 2 cents.  No way would this have been possible without the wave count, it is the only thing I used to time this trade.



I subsequently sold at $11.90.   Folks, that is a 40.82% gain in a single day!!  Woo freaking hoo!  I wasn't playing big money on that trade but it sure was fun to watch in real time.  The shares subsequently peaked with a declining double top at about $12.30.  I had no desire to get back in and chase and as a matter of fact there is risk to the downside as shown in the model below.  Having said that, The model is questionable in that the 3rd wave (as defined by the blue pointers) would be the shortest and it is certainly not what I would expect from a 3rd of a 3rd.  But it is also possible that 3 of 3 is defined by the red pointers in which case it would be valid.  Thus, to the sidelines with my profits instead of trying to guess.


For the record, my primary JNUG model appears as below.  I will be watching JNUG and the DJIA to see if they continue to trade together or if they diverge.