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

[food4thought]

Stockitout is right from the standpoint that it would take the underlying index GDXJ to absolutely fly for JNUG to get back to half of where it once traded. It’s a percentage game now. GDXJ did not get rebalanced, JNUG did, so essentially that gap decline and valuation vanished, never to be reversed or where it once once.

Now for every 20% move in GDXJ you’ll get, or are suppose to get, a 60% move in JNUG, which is currently a measly $2. A month ago JNUG would be up $50-$60 dollars on a similar move. The percentages remain the same, yet JNUG’s price to multiple in the equation has been obliterated. The only way that corrects is a rebalance to the upside, which I don’t think ever happens. Idk. Maybe it did with tvix. Volatility has a different measuring tool than an ounce of gold or silver however. It can easily spike in comparison.

As it sits today, GDXJ would have to go up 1000% for JNUG to get back to $100. Gold and silver would need to soar like never before for anything like that to happen. Not sure it’s possible, which sucks, as I hold a hefty bag of this shit. Getting in now however, you could easily double or triple your investment in the upcoming weeks/months.