Buy the extended trading dip in JNUG

JNUG tried to pull a fast one on me into the close.  I posted this intraday post because I suspected that something interesting was going to have to happen at the gap fill.   In it I wrote: "Somehow JNUG needs to power through that gap and not get hung up at the 50 fib so that the momo boys see fit to throw money at this thing.  There is no telling if it will happen or not so I am ready to bail on my entire JNUG position (for now) if that resistance cannot be taken out in a definitive manner."

I clearly suspected that it was going to be the big test of whether the miners had really begun to mount a reversal that would be something more than a 1 day flash in the pan.  If that gap had filled during the normal trading day, traders would have sold the crap out of it. Heck, I was ready to sell that gap close unless it could somehow blow through it in a "definitive manner"!!  Had it meandered up to close the gap I would have sold first and asked questions later because while I believe that this is a legit and significant rally, 5 waves up predicts 3 waves back and I wanted to keep some of the nice profit I'd made today on the JNUG turn.  So I drew the channel lines between red 1-3 and red 2-4 and just sat there with a market sell order ready to click enter on.  After all, even if the chart turned out to be bullish after filling the gap,  an a-b-c retracement was due. 

And so it struggled and struggled as I watched it yet it could not fill that gap.  That's when I started wondering if the chart was going to avoid filling the gap so that it could gap up PAST the gap tomorrow AM after late day a-b-c pullback.  So I extended the red 2-4 line up and decided to sell when either the gap got filled or the lower support broke.  The support broke down rapidly so I only got $3.68 out of it since I am doing other things with one eye on the screen.

Then I saw it form that triangle circled in red and I suspected it was an A-B with a C still waiting in the wings to fall down to the 38.2% fib.  Moments later, the ground opened up and the chart just started plummeting until it hit the 50 fib.  I didn't have quite enough patience so I ended up buying back in at $3.30 and missed the few cents below that.  But I dodged  most of the retracement and now I can make out a very clear 5 wave pattern in that C wave.

So right now I'm modeling (and hoping) that tomorrow we get a gap up at the open which, if it doesn't clear the existing gap (between $3.95 and $3.73 which got formed on the way down), will at least give enough bullish momentum to the trade so that the chart can roll right through that gap with gusto, thus eliminating the likelihood that it will be viewed as resistance.  If that gaps gets cleared in the AM tomorrow it will have to be taken as a very bullish sign by the markets.

Of course, it could continue to head down tomorrow but I see the circumstances as all too suspicious.  I think someone is setting a bear trap for JNUG.  We shall see tomorrow for sure.  I'll set my stops at 3.18 in case it wants to kiss the 61.8 fib before heading higher tomorrow.  I think it will gap up at the open though.  This spring is wound down mucho tight after all the crazy selling that has occurred of late.  At some point it just has to skyrocket and let off some of that pressure.