The rally from late April’s lows is the strongest we’ve seen in a while and therefore a good bet to reach the 3.051 target (see inset). Ordinarily I’d suggest a ‘mechanical’ buy on a pullback to the red line, but daily price swings in this vehicle are too dramatic to produce the subtle kind of set-up we typically look for. Instead, I’ll suggest looking for tradable patterns on the 5-minute chart — specifically where they occur within clear, uptrending ABCs of larger degree. An example can be found where A=2.835 on 5/12 at 8:05 a.m. EDT; and a=2.884 on 5/12 at 6:55 p.m. _______ UPDATE (7:45 p.m. EDT): Subscribers evidently used my advice creatively to get long, leveraging equity vehicles such as UGAZ to profit from the rally. For the record, it stalled somewhat shy of a 2.92 target that remains valid (15-minute chart, A= 2.41 at 2:30 p.m. on 5/11).
