Direxion Daily Gold Miners Bull 2X (NUGT)

[Nightridertwou]

When considering this move, it is important to recognize that gold has been a decidedly unloved asset over the last several weeks: the gains from the surprise no-tapering in September were quickly given up, the Summers and Yellen news had virtually no impact on gold price. The anxiety from debt ceiling issues moved T bills and other assets, but not gold. All these “non-moves” on the one hand are indicative of a poor sentiment and confirm the bearish positioning and sentiment that has defined gold for much of the year. On the other hand, the fact that gold did not move up substantially on the debt ceiling/[Summers]/Yellen news also means there is not a lot of long exposure; if we get very good news out of Washington D.C., there is much less gold longs which need to head for the exit door. This to my mind suggests that this move may be more of a quick flush out followed by a quick bounce when the bears pass the ball to the bulls.