[GDXJ] update

In the backlink I pointed out that GDXJ was able to move 5 waves up and that during the 5th wave it was able to poke up and through resistance in 5 waves.  Here is the chart from that post:

 


Now, it is a common theme in this blog that 1st waves are generally not strong enough to break out of big resistance and to hold it.  Instead, they often break out and then gravity drags them back in.   It is also a common theme that 2nd waves which occur at the end of a long pounding are often of the deep vee variety.  With those things in mind, check out the recent action on GDXJ.  If this chart model holds then GDXJ should have bottomed already or might do so in the next trading day or two at most with the speed things are moving now.  After that we should see a very strong move up which eventually breaks out the top rail here.  This 3rd or C wave up would be at least 25-30% for GDXJ and much, much more for JNUG.



Zooming in on just the recent pullpack, it looks like we could get a move down tomorrow AM into the low 19s before the bids begin to take off.  Because of this I might have bought JNUG just a tad early today but I'm going to loosen my stops to allow for one more wave down like this.  But it should bottom before noon and then begin turning back up into the afternoon.  The angle of up can be a lot more vertical than shown but I was being conservative about it.

Note that the B wave looks quite GOE.  If we see this move down in the AM like this, spec buy JNUG once we see 5 waves down that are about the same size as cyan 1 of red C.  And always set your stops once you buy in because why?  Because this is all about odds and not about certainties.