[JNUG] update

At the backlink I provided the model below with the commentary, "Current snapshot shows that wave 4 morphed into a HT, a very common 4th wave expression.  By all rights this 5th wave should go lower than blue 3, maybe as low as $7 before reversing upward.  It would be a sign of weakness of trend if this were to turn into an inclining double bottom but I would not anticipate that."

 

Seems I got lucky on that call and $7 was indeed a nice inclining double bottom.  Since then it peaked at $9.75.  I don't know if we will get it but I would like to see a pullback to the $8.25 area in the next few minutes in 5 waves and that would be the next spec buy signal.  Given that I think we are so close to a significant reversal which would be the early stages of a monster rally in M+M to at least GLD $1350, I'm holding a 1/2 position of JNUG right now and only swinging with the other half.  In other words, I believe that it is becoming more dangerous to my financial health not to be in JNUG.  When the reversal comes its goal will be to leave as many on the sidelines as possible.  If Avi is right and M+M have one more big downwave then that position will get trashed but then I will come in very, very heavy with a 1.5x or better position.

The percentage moves at these levels are going to be pretty big so I caution people to buy the dips and not chase the peaks.  If you missed buying back in at $7 based on current model, wait for the first really good dip - wave 2 down - to play out.

If it breaks below $7 then, yes, they could still take it down to $2 again before the final bottom is in and in fact that would be the likely outcome if Avi's current model is correct.  So, keep some M+M powder dry for that event because a final crash to $2 will likely last about an eyeblink and then it will be at $8 again on its way higher.