[RUSL] bottom may be in.

In the backlink I was modeling another wave down into the $11.50-11.75 range using the model below.




While the price target mentioned in that post was momentarily exceeded to the downside, it was not able to break down below the old low of $10 and I find that to be quite interesting.  It would not have taken much more to accomplish that but it did not happen.  At least not yet.  Because of this, I picked up some shares on the second dip after I saw that it was unable to create a new low.   I see two likely models going forward to finish off this wave of the commodities wreck.  First is that this turns into a 4th wave HT as shown by the cyan model.  Trust me, if this moves up tomorrow AM but falls short of a new high leaving a DDT, I'm selling RUSL and probably JNUG as well.

So if I fear this, why even be in the shares?  The reason is that there is a nonzero chance that the inclining double bottom is going to reverse strongly upwards per the red model.  If this is going to be the case, the most likely way of indicating it would be to gap up tomorrow as shown in red thus leaving an island reversal in place while at the same time killing the potential for a HT.  Even if it does eventually complete the HT, a lower low than $10 is not assured even though it probably should be the first assumption that it will slightly exceed the old low after E of 4 is complete.





























At this time commodities are trading with the broader markets but at some point I expect a divergence to occur.  When this occurs, the markets should continue downward while commodities catch a bid.  This is because the commodities were already at significant lows before the DJIA began to fall and no, I don't think commodities are going to become "free" at any point in my lifetime. 

But the DJIA is a fiat currency, really unbacked by anything.  So it's not impossible that the DJIA might go completely bust in my lifetime and maybe it will even be shut down as all the people who are now at serious risk of losing their life savings demand that government punish evil wall st for playing on their greed like that.  This can happen because stocks are essentially worthless.  But as long as there is rule of law commodities will never go worthless and if rule of law fails then who cares about any of this at that point.  The only thing that would matter in a Mad Max scenario is booze, cigarettes, gold/silver, food and guns/bullets.