Replies to post #5248 on Direxion Daily Junior Gold Miners Index Bull 2X Sh (JNUG)

[2434nate]

I see what you are saying.I started buying jdst yesterday and today. I hear u on holding i dont like holding these 2 very long at all always switching and flipping. I think we cld see a big selloff today because monthly high was at 59 and some change. If its bull and uptrendind shouldnt it close near there!?

[2434nate]

The only pattern i really only see in Jdst is the J pattern or Scallop

[Marketwise]

"JNUG and JDST seem to over react to GLD prices for some reason". That would be due to the ever fluctuating contango and backwardation that is created in the underlying financial instruments in both JNUG and JDST by the ever changing and fluctuating price of gold. (There is of course BIG decay in both ETFs over the intermediate and longer term as a result of using swaps / futures to leverage both). This is one BIG reason why JNUG saw a 15 fold increase in the first half of 2016 as gold moved about 30% over that time period....About a 50 to 1 ratio - JNUG % increase to gold price % increase.