Direxion Daily Gold Miners Bull 2X (NUGT)

[andrius]

"Now if we have a meltdown in the market then I would rethink buying gold"

IMO too many people think gold is a safety play during bad markets simply because it performed well during last collapse. Most of gold gains actually were with markets bouncing and when .com bubble burst gold actually went down. Not sure how much correlation to market direction given golds history of long consolidation periods. It ran huge during 1970s and peaked 1980. It took over 20 years to finally bottom and 26 years to make it back to 1980s levels and that doesn't include inflation. Long term chart still very bearish, long term trend lines down, fresh multi year lows 2-3 months back and this is likely just a short term bounce to resistance. Could be wrong but thinking gold will do 61.8% fib retrace from all time highs and consolidate for many years before we see next big move up. Some of you gold bugs might jump all over me but its just my .02 cents, don't invest long term anyway.