Thursday, June 12, 2014

Gold: The Incredible Moves In The Triple Leveraged Junior Miner ETF's (JNUG; JDST)

Triggered by a change of psychology in gold (up 1.01%) the Market Vectors Junior Gold Miners Index ETF (GDXJ) was up 5.87%, nice leverage in itself but nothing when compared to the Direxion 3x ETF's built on the index ETF. Here's the Bullish variety, JNUG:
Chart forDirexion Daily Jr Gld Mnrs Bull 3X Shrs (JNUG)
Up 17.52% on the day. 
And here is the bearish flavor, JDST, down 19.63% today:
Chart forDirexion Daily Jr Gld Mnrs Bear 3X Shrs (JDST) 
That's $3.97 on a $20.22 starting point. 
Because we are bearish on the Junior miners but have not done anything with JDST we are only observers at the moment but, wow. 

-19.63% on a 1% move in the commodity, wow-o-wow.
In comparison the Senior miners move at glacial speeds, up 2.65% on the GDX leading to an 8% decline in the 3x bearish DUST and a a 8% gain in the bullish NUGT. 
We were long the DUST to start the day but I'm guessing it was stopped out.