Direxion Daily Gold Miners Be (DUST)

[Sgreg]

I know a pump job when I see one. I have played the OTC for 15 years (successfully). Have a look around the last month. All media is bullish, all message boards are bullish. Articles stating actual real fundamental reasons why miners should be parabolic are all fluff. No mentions of price to earnings ratios or balance sheets or debt burdens or miners lack of profitability. No mention that gold is flat over the last month. No mention that miners are parabolic and that the entire sector is up 100-150% in 3 months. That is because no one wants to say these but they are the true fundamentals. Instead fluff stories are put out to keep the pump going.

This is a grand pump job now. Don't worry because the pump isn't over yet. Yes though it will end eventually. Last sector pump job was biotech and they crashed. Sector before it was weed in 2014 and it crashed. You can't have entire sectors go up 150% in 3 months and not consider there is fluff and pumping going on. Miners are now in a pumping phase and there is always a phase that follows the pump.

All in all I did alright here. Made winnings on 8 out of 9 trades. Not bad. The real money will be made once the pump fades and it will. Just can't have the S&P 500 at a price to earnings ratio of 20 and think that is expensive and then have the mining sector at P/E of 80 and think that is under-valued. Can't have a sector go parabolic and then instead of correcting it just bases and goes parabolic again. I mean these things can happen and do happen but they always lead to you know what.