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JNUG Prediction Meets First Target

Summary

JNUG Prediction Meets First Target

JNUG meets target predicted in October 10 report

New target is $20.84

In my October 10, 2017 report, I recommended two aggressive plays to take advantage of the proprietary Variable Changing Price Momentum Indicator’s (VC PMI) forecast for bullish gold. One of the recommendations was for Direxion Daily Junior Gold Miners Index Bull 3X Shares ETF (JNUG). Today (October 12), JNUG has already completed the first target (sell 1) forecast in the report, which was $20.11.

    

I recommended that coming into this week, if the JNUG price reached levels of $20.11 and $20.84, if you are long, you should gradually take profits off the table. JNUG already reached $20.44.

“The VC PMI gives you a level where you can see when the up-trend or the price momentum would be negated to neutral, which is $18.71. You can use $18.71 as a protective stop. If the market moves down to $18.71, then it automatically activates the extreme blow the mean levels of $17.98 and $16.58. The market might be moving lower. This would tell you to cover any bearish sentiment or short position at $17.98 to $16.58, with a trigger price of $17.98 and an automatic stop at $16.58. If the market moves down to $16.58, it would trigger a buy 2 signal, so you would hit a buy 1 trigger at $17.98 and buy 2 at $16.58. At that point, you would reverse and go long. If the market hits a trigger at $17.98 or $16.58, I recommend using $16.58 as your stop. If you buy at $17.98 and the market turns around and closes above $17.98, you can raise your stop at that point to $17.98, your entry point. The first target would then be $18.71, which is the price momentum level from the buy 1 or buy 2 levels. If the market closes above $18.71 twice, it would activate the upward targets of $20.11 and $20.84.”

We use the first and second levels of the extreme above the mean to provide a range of between 1 and 9. At 9, which we label the sell 2 level, the market is extremely overbought and the probability is 94% that the price will revert back to its mean or average price.

This concept relating to the mean took a long time for me to understand using technical analysis. I could not understand that when the market turns and begins a trend up, particularly on a long-term basis, and all the technical analysts see that signal as a buy signal, the majority of the time the market retraces back. I have found that once the price is accomplished to a price extreme above the mean, the market usually retraces back to the mean, with at least a 50% Fibonacci retracement 90% of the time. Why? Reversion to the mean.

Reversion or regression to the mean is a statistical term related to the phenomenon that if one measurement is extreme, then the next measurement will tend to be closer to the mean than the first.

Mean reversion trading looks to capitalize on extreme changes within the pricing of a particular security, based on the assumption that it will revert to its previous state. This theory can be applied to both buying and selling, as it allows a trader to profit on unexpected upswings and save at the occurrence of an abnormal low.

JNUG has met the sell 1 level of $20.11 and has come down to test the $18.71, the mean for the week, and has rallied back to where we are currently trading at $19.67 (12:27 pm PT, Thursday, October 12). The next target is $20.84, which is activated for the remainder of the week.

Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts. It is for educational purposes only.

BUY JNUG FOR AGGRESSIVE TRADERS

 

 

2 Aggressive Plays For Bullish Gold – SeekingAlpha

Summary

Long-term Gold Forecast.

Aggressive Play in Gold: Direxion Daily Junior Gold Miners Index Bull 3x Shares ETF.

Less-Aggressive Play in Gold: Taseko Mines.

Long-Term Gold Forecast

Based on the EMA2 Trade Live Analytics’s proprietary Variable Changing Price Momentum Indicator (VC PMI), I analyzed levels of supply and demand for gold that I expect to see for the twelve months from September 28, 2017 to September 28, 2018. The outlook is bullish and there are two excellent aggressive plays to take full advantage of the forecast: Direxion Daily Junior Gold Miners Index Bull 3x Shares ETF (NYSEARCA:JNUG) and Taseko Mines (NYSEMKT:TGB).

Read more HERE

Long-Term Buy for JNUG!

Long-Term Buy for JNUG

 

Recent analysis by the Equity Management Academy shows that the Direxion Daily Jr. Gold Miners Bull 3X (JNUG) ETF is an excellent long-term buy.  

 

Academy CEO Patrick MontesDeOca, said JNUG is a “remarkable trade,” which is sending a “very clear buy signal.”

 

MontesDeOca said that there has been a Fibonacci retracement in JNUG since a $33.29 high in August. The ETF then reached a low on the December 19, 2016. Since then, JNUG has developed a trending pattern up and, MontesDeOca said, “Shows every indication of the beginning of a really exciting move. We have a fairly sizable move coming in the price of gold. It could be a generational move.”

 

After the $17.93 close last Friday, the Academy’s proprietary trading system, the Variable Changing Price Momentum Indicator (VC PMI) recommends buying into JNUG at $17.03 and buying more if it retraces to $16.12. If the price comes down to these levels, there is an 80% probability that the price will revert back to the mean of $18.71. If a price of $16.12 is reached, JNUG would be extremely below the mean, with better than a 90% chance that it will revert to the average price of $18.71. If JNUG closes above $18.71, it will trigger a bullish trend with a target of between $19.62 and $21.30 short-term.

 

Overall, the recommendation is to go long on JNUG. “The market has come down to a very good buying level,” MontesDeOca said. “We have clearly reached a level of support.”  

 

MontesDeOca cautioned that JNUG is a “very volatile ETF” and investors should be aware of the risks involved with the JNUG 3x velocity ETF.

 

For more information on the criteria to join the Academy’s select group of investors or to see every trade recommended by the VC Price Momentum Indicator for the past few years and its impressive rate of return, please email support@ema2trade.com or call 805-418-1744.

 

Gold Yearly Report for 2017/2018 –

Gold Yearly Report for 2017/2018 –

The Equity Management Academy has developed a proprietary trading system called the Variable Changing Price Momentum Indicator (VC PMI). The system recommends buying gold long if it passes $1253, with $1269 confirming a long-term bullish trend.

What is the recommendation based on?

First, the VC PMI analyzes the long-term trend momentum based on the 50-day moving average. Gold closed at $1288 on September 28, 2017. By closing above the 50-day moving average of $1253, the market showed that the long-term trend momentum is bullish. If gold should close below the 50-day moving average of $1253, it would negate the bullish sentiment. The 50-day moving average is the first pivot point our analysts use to identify a shift in the long-term trend of the market.

Second, the VC PMI analyzes the price momentum of the market, which is the average price we expect for the following year. The VC PMI program calculates the anticipated supply and demand levels for the next day, week, month and year. We calculate what the extreme above the mean could be for the year and the extreme below the mean could be for the gold market. The analysis creates a structure for trading supply and demand based on the average price. The average mean price is $1264, which we call the VC Yearly PMI. The market closed above the average, which confirms that the long-term price momentum is bullish. If the market closed below $1264, it would negate the long-term trend price momentum to neutral.

Third, the VCPMI identifies the extremes of supply and demand for the next 12 months. If gold closes below $1264, it would negate the long-term trend to neutral. If that happens, we would expect to cover that bearish trend. We recommend that if you have any shorts, you should cover them on corrections of $1166 to $1044. If you are long, we recommend using $1044 as a long-term stop close only and good til cancel order. We suggest taking profits long term, as we predict reaching the $1386 to $1484 levels during the year between September 2017 and September 2018.

The VC PMI Trading System is available from the TradeStation app store. For more information please visit ema2tradelivesignals.com or call 800-418-1744.

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