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Author "What is Chen Buying? What is Chen Selling?" Chen grew $5,400 to $2.3 million in 10 years. Learn More
Leveraged Gold Miners ETF Close to Bottoming?
After four long months of seemingly constant selling, a popular triple leveraged ETF tied to gold mining stocks is showing some initial signs of an upcoming bounce.
Analyst Gary Savage of Smart Money Tracker points out some very heavy volume recently in NUGT:
We’ve had capitulation level volume these past two days. Now we need to see an up day on huge volume as the sign of a possible bottom.
So while a bottom isn’t actually in yet, we’ll wait and see if we get the all-important big rally day on big volume to indicate the beginnings of a bounce.
Looking at fund literature, “The investment objective of the Direxion Daily Gold Miners Bull 3x Shares ETF seek daily investment results of 300% of of the performance of the NYSE Arca Gold Miners Index.” These types of leveraged funds are suitable only for traders and investors willing to shoulder substantial risk, because they can endure wild swings on a day-to-day basis.
The Direxion Shares Exchange Traded Fund Trust (NYSE:NUGT) fell $0.02 (-0.34%) to $5.91 per share in Friday morning trading. Year-to-date, the largest leveraged gold-related fund with over $1.4 billion in assets has gained 22.84%.
NUGT currently has an ETF Daily News SMART Grade of F (Strong Sell).
You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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