As you can see from the real time update, while reality did not match the wave shape exactly, the price target for bottoming was spot on. Of course, there are many ways for the EW patterns to play out and above was only one of several legit possibilities for putting in that 5th wave down. But now we see what looks like a WC B wave (in other words, a B wave formed by a falling wedge C wave - C of B as it were) which
a) did not create a lower low
b) broke back up into the channel with a gap and is now testing the top rail.
If this is a break out ready to happen then it will occur with a 3rd wave up.
Below is the move off the ~$7 bottom. Folks, this does not look good for JNUG. I just hope that it does not gap up on Monday so I have time to unload JNUG and hopefully get a small price bump on it. We do have the chance that this will C wave its way all the way down to $7.80 in order to fill that gap so be watching for that as well (i.e. a move to the 50 fib). I will certainly dump JNUG if this happens and most likely flip to the dark side. I have to go with the wave count that I see, not the one EWI tries to convince me of.
BTW, IFF EWI is going to be correct then this should collapse below the lower rail again on Monday AM. It should not meander or trickle downward. Meandering = corrective meaning that the real trend for JDST is likely up. These are the things to watch for on Monday IMO.
Joining the dark side today per chart development .... in JDST at 7.5. Thanks captain.
ReplyDeleteStops at $7.75. I have to admit that JDST not only pulled back deeper than expected (more than 61.8 fib) but also the move down could be counted as 5 waves. Tomorrow it will either break out above the falling wedge or perhaps kiss it and then continue falling more.
ReplyDeleteOn the jnug chart, the chart broke back out the top of the HT. I actually got stopped out of JNUG at 22.60 yesterday and then since I cannot watch the screen in real time anymore I put in a limit buy for 22.20 today which got filled. I'm going to hold overnight simply because EWI thinks the gold bull is in the next wave up AND my negative JDST observations were basically negated today by the 5 wave move up in JNUG. I really don't have any clear EW model as to where this goes from here right now. In a day or two I likely will.
This is not an obvious count anymore so both longs and shorts should use stops IMO.
In at 7.34. Stops set!
ReplyDeleteAnd out of JDST today at 8.17 from 7.5 entry yesterday ...... net gain about 1500 .... thanks captain.
ReplyDeleteChance, string together a good number of nice base hits like that and pretty soon you have a ballgame. Good luck man.
ReplyDeleteCaptain,
ReplyDeleteMy thanks as well. Stops were set loosely at the start of the day to mitigate the initial chop. Thankfully had time today to pay attention to the waves and ratcheted up stops accordingly. Got out at $8.33
Your insights were extremely valuable, as always.
Cheers,
Chance
Rejoining the dark side again today ..... in JDST at 7.78
ReplyDelete