Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG)

[food4thought]

Let's recap....

So the managers of the JNUG fund and holdings diluted the share count to their available ceiling because there was a demand. Took the money from those shares and held it rather than invest in gold related stocks or juniors which is why JNUG didn't participate in the recent gold rally. They sat on cash. Some of the junior minors they did hold were manipulated by institutional sell-offs and large short position were put on JNUG by hedge fund managers knowing there was no way for JNUG to move up.

Now they will be rebalancing their holdings to include investments and minors of their choosing with the cash coffers. A little late to the party I would say. More than likely intentional. Is this all not very illegal and the result of insider knowledge and privy information?

Even if that is the case, JNUG shouldn't be retreating this aggressively unless their existing holdings are all getting pounded, which should not be the case with gold up. I guess the future of JNUG depends on where they put the cash to work. How much time do they have to rebalance the fund? If they load up on minors quickly that have been suppressed by institutional selling and without merit while gold holds up, Q2 should be thru the roof! Providing they get those minors on discount.

Just trying to make sense of this nightmare as there appears no upside regardless of what gold does and until the rebalance and holdings has been disclosed. What a pile of $hat I got into.