I would think of being Long Gold Miners instead of NUGT if you think GOLD going Higher; and then consider DUST as a Hedge or "IF" further short-term weakness....JUST MY THOUGHTS....I sort of asked jimmybob this in a previous post; But still not sure if it is the Best Strategy???
I am 100% clueless where GDX will close Monday, in a week, in a month, or in a year but, with all due respect, I am 100% certain that the strategy that you outline above, being concurrently long both DUST and NUGT, is a strategy definitely doomed to fail.
Leveraged and inverse ETPs are derivatives, and it is imperative that you understand the underlying mathematics.
Begin by clicking below and delving into the articles and videos:
DUST rallied last month from Oct 28 until Nov 5. Had you guessed correct about an imminent rally but held onto a $10000 NUGT position while adding $10000 of DUST, your $20000 portfolio of October 28 would be at ~$23000 when DUST peaked.
Had you put all $20000 in DUST, you would be sitting on ~$34000!
YOU CAN PARTIALLY HEDGE DUST WITH GDX BUT NOT WITH NUGT!!!
If you had purchashed $10000 each of DUST and NUGT exactly 1 year ago, that $20000 investment today would be worth $10700!!! A double short would have been hugely profitable (profits would have been reduced by hard to borrow fees).
Personally, I only short these vehicles, sell credit spreads, or buy put spreads. If I were to think that DUST would rally, I would play the dark side of NUGT!