Direxion Daily Gold Miners Be (DUST)

[Sgreg]

Saw this right before I was signing off. The severity of the market dump will dictate what gold and miners do. If the severity is mild like a normal correction then both gold and miners should do well. If the severity is moderate like 20-30% market dump then gold should do well but miners start to do bad as the severity gets worse. If things actually get bad then there will be deflation. Everything goes down. Gold will go down and miners would crash with market. Last time there was deflation was in 2008. You can see when it came gold dropped. Gold did not drop near as bad as the market though. Gold miners did terrible however because they are dependent on banks to survive. Once the bailout went through in late Oct 2008 then miners started to recover ahead of the market.

Mild market dump = gold and miners do well
Moderate to strong market dump = gold does well and miners do ok at first but get dumped as things get more severe
Market crash = deflation has come and nothing escapes. Gold will drop (along with all commodities and property) and miners will crash with the market

What is going to happen I don't know but I have a feeling things could start to turn sour in June. Hopefully not, I don't want deflation or crashes or financial meltdown etc. Hopefully just corrections and we move ahead.