[USLV] update

In the backlink I was looking for one more small wave down in USLV before reversing sharply upward.  The model from the backlink is far left.  Current snapshot is center.  As you can see it didn't get that one more little spike down to $12 and instead gapped up.  To many eyes this will be a gap fill which should be sold off but I see it differently as you can see from my re-numbered count in green for the center (current) chart.  Because I count the recent micro rally as 5 waves up I think it has to be viewed as a potential reversal of trend.  So the recent bottom was either 5 or 1 of 5.

Going forward, the short term model is shown far right.  I suspect that the gap will not be filled this time and that will tell traders that buyers are stepping in.  A small 5 wave move back to the 38.2 fib would be good reason to step back into USLV with stops set just below 5 of C.

If you look at my posts on PAAS and ABX you will see similar themes.  I have to say, I would really like to see Avi's GLD 95-105 play out and HUI 100 too.  That would just really add a lot of confidence to many traders that a sustainable bottom had been reached.  And of course, when dealing with assets that have no actual economic value like stocks, confidence is all you have.  So even if we do get a 3 wave a-b-c move to $18.50 here, do be aware that that might just be 2 of 5 and that one final washout sell off could occur into 3 of 4 and then 4 of 5 and then 5 of 5.

Finally, don't forget that just after a trend change that wave 2 is often a deep vee.  In this case it would form inverted owl ears.  It doesn't have to happen but if you spot it happening then you might be able to trade for profit on the volatility.  As usual, don't chase peaks people.  If if it does run away it will always come back to some degree so always buy the 3 wave pullback and, if trading, sell the 5 wave peaks.