I really did not expect JNUG to get back down to this level but now that it is here the sell trigger for any new position taken out is clear. Above this line JNUG is a hold, below it I will sell. While this is not my primary model to happen, a break below that neckline could be treated by the market as a H+S neckline breakdown. Again, the head is too triangle-ish for this to be my primary model but I have not forgotten Avi's GLD target of 105. If it breaks down then I will not be disappointed, I will eat my small loss and lower my cost basis. But right now this is not my primary model.
Again, the rising dollar seems to be the controlling factor here. The UUP 10 Minute chart below shows it has progressed into the mid range of my $23.50 - $23.60 price target which was arrived at simply by assuming, under the associated EW guideline, that wave 5 will be about the same length as wave 1. The blue vertical line is the height of wave 1 (which peaked in June of 2014) of 5 of UUP
4 comments:
Cap'n, those last 5 minutes of JNUG trading were really something... traded and then watched 15-16 cents up with somewhere near 1M shares volume! Whew, the volatility!
Steven B.
Yeah it seems like everyone is trying to grub the last penny from the trade.
It's not clear to me whether the barbarous relic is still tracing 4 of 3 of a wave down or 1 of 1 of a wave up. Holding fast to discipline and respecting the waves, I'll just wait for the count to be clearer. Regardless of my being wrong, there'll be a wave #5 or #2 dip to enter.
Cap'n, for the record, I was on the right side of the trade in the above post! Rereading, I realized I wasn't clear. Thank you!
Steven B.
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