It is because I suspected another move down like this that I wrote in the JNUG backlink, "I sold out today for a small profit at $7.50 right into the close.... I see a count whereby an expanded flat correction takes me to the level of the prior peak and that often means it is corrective. If JNUG doesn't show significant strength, and buy that I mean more than 10 or 15 cents, at tomorrow's open then I will continue sitting on the sidelines with JNUG."
Since I don't buy the moves up, only the dip, I waited for the dip this AM but dip turned into something bigger so I just stayed away. I suspect that commodities could still see another day or two of selling if the upper blue support line in GLD is broken down. IF so, it should stop at the more important rising red support line.
I suspect that the swoon of the DJIA into 15k to complete Intermediate wave 1 down will be used as the reason to sell commodities into one last "commodities are pet rocks and so miners and oil services are rock collectors" capitulation. I strongly believe that such selling will be a buying op with hundreds of percent upside likely.
My primary model for GLD is red below. That suggests more selling for JNUG. It doesn't have to happen but it would really be a great way to flush out ever protective stop while not ruining the liklihood that gold has entered some kind of bull market. The 1-2, 1-2 leads to a 3rd of 3rd which will leave a lot of day traders in the dust. Even though I suspect one more wave down in metals and miners will occur as shown below, I'm beginning to worry that I will play my hand too far and get gapped up. So I'll buy at least a 1/2 position of JNUG into the close and then watch it pretty closely.
Note: TooDumbAmeritrade has again F-ed up the reverse split of JNUG making the chart nearly useless AGAIN. They promised to fix it before but never did. Feel free to call them yourself and ask that it be fixed. Until then I have to use GDXJ as a proxy for JNUG.
No comments:
Post a Comment