[JNUG] update

At the backlink I took the conservative view that JNUG could have one more move down before bottoming.  But with the action since then I am starting to doubt that model.  Not because of gut feeling mind you, but because of the chart.  Below is a valid count where the 5th wave bottomed center channel of the falling wedge which I have advised many times in these pages to be a bullish occurrence.  Additionally, 5 is the same length as 1 as measured by the green verticals.  Since the bottom we have seen higher lows and higher highs.  Additionally commodities just busted out.  Finally, JNUG has quietly broken out of the top falling rail which was suppose to contain it for the next wave down and is now starting to angle up.

Hopefully for the past 3+ months everyone has been buying something golden.  When JNUG breaks that red resistance I suspect it will pick up speed rapidly to the upside.  Usually these sideways movements are flag formations indicating a continuation of the trend which is down.  But this is now too long for a flag and flags don't breakout like this, they tend to conform.  So the odds that this is still a flag are low at this point.  The flag has turned into the takeoff roll.  It is gathering confidence by holding support and when the nose tips upward and the gear visibly leave the ground then the momo traders are going to jump in just like they did in the energy sector.

Buy the 3 wave dip as soon as you see it.  Any 3 wave dip.  I doubt this will stay Earthbound much longer.  The level of the prior 4th is well over $200.

A break of any size back down into the channel negates this model.  This rolling take off model is all about momentum.