Stopped out of JNUG (of course) and now looking for another entry point

In this leveraged game you have to use stops based on models.  My model said that anything less than $7.50 meant that it was bust and so I got stopped out @ $7.49 while the floor opened up underneath JNUG.  Again, this is the kind of stop out I LOVE.   By carefully choosing my entry point, my stop was only 13 cents lower.  So I lost a couple of percent but the shares plummeted much lower and on massive washout style bottom.   So I hope to be re-entering tomorrow or Friday for a big run up.

When this does reverse the minimum target is $12.  The more likely target would be the 38.2% fib.  Assuming a final bottom @$6, that would be $17.41.

Of course, they could just go ahead and finish wave A down in gold and then JNUG could be in the low to mid $2 range just like these ETFs like to put in major bottoms at.

As far as the Fed action today - it was as expected: stimulus is to be cut off.  As opined in these pages, Yellen's speech on income inequality made it clear that this is where she was headed. 

Of course she also kept the fed funds rate at .25%.  This is not to be confused with the treasury rate!  Without future stimulus, much of which is used to buy treasuries, the 10 year bond rate really has no place to go but up.  In other words, the bond market will ignore the overnight rate and begin to demand more interest.  It's a simple case of supply and demand.  The supply of new debt from the US is not going to be reduced at all; it will only increase over time.  But now with the fed stepping back as the main buyer of this crap, who will buy it?  More mystery buyers out of Brussels?  That is a dangerous game for the fed because if they get caught red handed using fronts for bond buying, the market participants will know they are being gamed and then they will lose confidence in the con men.  That is always the end of any con game.  So the fed must not go there, not yet at least.  Things are not that desperate yet that the fed needs to risk getting caught red handed in fraud.

Note that despite the decrease in inflationary activity by the fed today (the promise to cut off stimulus), $TNX.X (10 year treasury) was up 1.71%.  Oh my!  Wasn't Yellen supposed to be rewarded for her reduction of inflationary policy by lower interest rates?  Isn't that the conventional wisdom?  The next few days will be very telling but if $TNX begins to surge it is going to crush leveraged market longs.

Let the margin calls begin!