JNUG ETF: An Investor’s Diary Part 2

The JNUG ETF is starting to make me feel like a card carrying member of “Knife Catchers Anonymous”

Bullion.Directory precious metals analysis 10 October, 2014
By Terry Kinder
Investor, Technical Analyst

In part one of this investor’s diary, my investment in the JNUG ETF was down 26% which made me think that it was time to begin drinking heavily.

It has been a pretty wild ride since yesterday for the JNUG ETF.

After plunging as low as $9.27, resulting in a 26% loss, the JNUG price ran up to $11.87, temporarily putting the entire position in the black.

By the end of the day price had dropped to $10.88, resulting in a small overall loss for the investment through yesterday.

Today the price action of the JNUG ETF was just as wild. The price opened the day at $10.70 and fell down as low as $9.50. At one point in the day it stood at $11.27 before finally finishing in after hours trading at $9.99. So, at this point my position is down 11.23% after being down over 26% during the day yesterday.

At this point, I’m starting to feel a bit like a knife catcher…

Unfortunately, catching a falling knife is far harder than it looks, plus if you mess up it tends to leave a mark.

But, you may be wondering, how did I get into this trade in the first place?

Well, JNUG is something I have been watching for some time. One place I first noticed some posts about the JNUG ETF was The Daily Gold. It seemed intriguing, so I posted about it over at the gold and silver community where I am one of the moderators.

Over time my thinking on JNUG began to evolve from looking at the investment through the lens of Point and Figure Charting to viewing it from the perspective of price cycles.

Part of the reason the wild price swings of the JNUG ETF haven’t driven me to drink yet are some things I discovered about the JNUG price cycles and a technique to project pivot high and low prices.

Stay tuned for JNUG ETF: An Investor’s Diary Part 3 to learn more about the underlying price cycles that influence the JNUG ETF price as well as a simple technique you can use to forecast pivot high and low prices.

Links to other investor’s diaries in this series:

Part 1
Part 3
Part 4
Part 5
Part 6
Part 7
Part 8
Part 9

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