Direxion Daily Gold Miners Index Bear 2X Shares (ARCA: DUST)

Ultime notizie per Direxion Daily Gold Miners Index Bear 2X Shares (ARCA:DUST)

Direxion Daily Gold Miners Index Bear 2X Shares

Direxion

The index is comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in mining for gold and, to a lesser extent, in mining for silver. The fund invests at least 80% of its net assets in swap agreements, futures contracts, short positions or other financial instruments that provide inverse or short daily exposure to the index or to ETFs that track the index which provider returns consistent with the objective. It is non-diversified.

Dustin Group AB

Gold has historically been considered the archetypal<a href="https://www.benzinga.com/money/advantage-gold"> safe-haven asset</a> – and safety appears to be a hot commodity these days. While the Federal Reserve has seen encouraging progress in the fight against inflation, key elements such as<a href="https://www.benzinga.com/real-estate/24/06/39550558/housing-costs-and-interest-rates-are-weighing-heavily-on-consumer-minds-study-finds"> housing costs</a> remain a burden on many American families. As such, a flight to defensive investments has invigorated the yellow metal.
Adding to the optimism for precious metals, Goldman Sachs recently issued a<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40689742/goldman-sachs-bullish-on-gold-wall-street-giant-targets-2-700-by-early-2025-driven-"> positive outlook</a> for the commodity. Its experts anticipate that spot gold could hit $2,700 by early next year. Fundamentally, a contributing catalyst stems from geopolitical dynamics. As an asset considered a safe haven by many, gold generally shares a direct correlation with rising fear. Additionally, the<a href="https://www.benzinga.com/markets/equities/24/09/40696921/traders-bet-aggressively-on-rate-cuts-ahead-of-jobs-data-5-etfs-to-watch-this-week"> much-anticipated Fed rate cuts</a> could boost in-demand natural assets.
One of the biggest economic headwinds in the post-pandemic paradigm has been the soaring benchmark interest rate. A necessary evil to unwind the monetary excesses during the COVID-19 crisis, high borrowing costs impede financing and commercial activities. Therefore, reducing this burden could boost the economy.
Notably, the Labor Department last month issued a<a href="https://www.benzinga.com/economics/macro-economic-events/24/08/40487711/us-economy-adds-818-000-fewer-jobs-than-initially-reported-urgency-for-interest-r"> downward revision of 818,000 non-farm payrolls</a> between April of last year to March of this year. Though this downgrade theoretically supports the case for interest rate cuts, some experts have<a href="https://www.benzinga.com/opinion/24/07/40078070/why-a-rate-cut-could-tank-the-stock-market"> voiced concerns</a> about adopting a dovish monetary policy prematurely.
In the past,<a href="https://www.benzinga.com/opinion/24/08/40229775/investors-cheer-a-likely-rate-cut-history-says-be-careful-what-you-wish-for"> rate cuts have signaled economic problems</a>, not opportunities. Such a framework could be deflationary for gold, posing a dilemma for buy-and-hold investors.
The ETFs: Nevertheless, the back-and-forth offers a chance for retail traders to scalp quick profits from the gold market. For this purpose, Direxion offers two leveraged exchange-traded funds. Those optimistic about the yellow metal – specifically the underlying mining complex – may consider Direxion Daily Gold Miners Index Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUGT#NYSE">NUGT</a>).
On the other hand, those who are bearish may find attractive prospects in Direxion Daily Gold Miners Index Bear 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DUST#NYSE">DUST</a>). Both ETFs are tied to the NYSE Arca Gold Miners Index but with different objectives. NUGT aims to seek 200% of the daily return of the aforementioned index, whereas DUST targets 200% of the inverse performance.
Whichever fund traders choose, they must be aware that both these vehicles are meant for exposure lasting no longer than one day. Leveraged ETFs are similar to mechanical watches. When just wound, they tell time perfectly. However, as the underlying springs lose tension, these analog timepieces suffer slippage. So it is with leveraged ETFs.
The NUGT ETF: While a strong performer this year, NUGT has incurred sharp losses recently. In the past five sessions, the 2X bull fund slipped about 8.5%.
<ul>
<li>The bulls will be encouraged that since late March of this year, NUGT is trading within a rising trend channel of higher highs and higher lows.</li>
<li>However, the optimists cannot be complacent as Tuesday's volatile session has put the price action right on top of NUGT's 50-day moving average ($44.17).</li>
</ul>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfQa0UP2BhdGCfyVhIhpGZ1x_rkXNqucBYclEH9rhPDNNvcYRS0pxFyamT5T4cIxA2BDqMybw0ghzpMESzkOOdJW5_7IoMnkMaikAzj7xFUHd976RSV-MZUiC8sR58A4bX669O6b7cNTfV7jyOuWoyUEow?key=cESNoaesC_lSH1QN8zt0mA" alt="" /></figure>
The DUST ETF: On the other end of the equation, DUST has been trending relatively poorly this year. However, in the past five sessions, the inverse leveraged fund gained over 9% of market value.
<ul>
<li>Since late March of this year, DUST has unsurprisingly printed a trend channel featuring lower highs and lower lows.</li>
<li>Nevertheless, the bears will be looking for a sentiment reversal, with DUST recently blowing past its 20-day exponential moving average ($6.01).</li>
</ul>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe4C84xVzfHorF81Gqx8q8u4vNQ7GFDnGl5Q_YtkwJs8PmcDrJibz5ifO98eJdApFbDgjUg5th3lnSibwRIW68VnPgdPHM3iOVcAbt3g7s8zsA0_uUgEPuFZrWa4T0icgw5Zm8U7Okfuk6tsyp4mVisgyiq?key=cESNoaesC_lSH1QN8zt0mA" alt="" /></figure>
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NUGT

A 'Golden' Economic Debate Highlights Trading Opportunities In Direxion's Gold Miners Bull And Bear 2X ETFs

Direxion Daily Gold Miners Index Bull 2X Shares (ARCA: NUGT)&nbsp;was spiking about 3.5% higher on Tuesday, continuing to fly north within a rising channel pattern on the daily chart.&nbsp;
Spot gold was rising higher Tuesday, trading in tandem with the S&amp;P 500, which opened lower after U.S. retail sales data came in stronger-than-expected but was shooting higher intraday. <a href="https://www.benzinga.com/economics/macro-economic-events/23/10/35286199/september-retail-sales-top-expectations-as-consumers-defy-high-inflation-interest">Read more here...&nbsp;</a>
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NUGT, which usually follows the price of spot gold was rising more significantly, likely for technical analysis reasons, because the ETF has been trading in a strong uptrend since Oct. 4.
NUGT is<a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs"> a double-leveraged fund</a> that is designed to outperform the NYSE Arca Gold Miners Index by 200%. The ETF tracks several gold and silver mining companies, with Newmont Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>), Barrick Gold Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) and Franco-Nevada Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) making up 31.56% of its holdings.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle by experienced traders, as opposed to a long-term investment. Leveraged ETFs should never be used by an investor with a buy-and-hold strategy or those who have low-risk appetites.
For traders wanting to play the gold mining index bearishly, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).
The NUGT Chart: Since reversing into an uptrend on Oct. 4 from the $24.19 mark, NUGT has formed a series of higher highs and higher lows. The most recent higher low was created on Oct. 12 at $27.94 and the most recent confirmed higher high was printed at the $29.50 mark the trading day prior.
Since Oct. 12, NUGT has continued to rise, regaining the 50-day simple moving average on Oct. 13 and continuing to spike higher on Monday and Tuesday. Eventually, NUGT is likely to form a bearish reversal candlestick, such as a doji or shooting star candlestick, which could signal the local top has occurred and a pullback is on the horizon.
The rising channel NUGT is trading in is bullish for the short term but can be bearish down the road. If the ETF drops through the lower ascending trend line of the channel on higher-than-average volume, a longer-term downtrend could be in the cards.
NUGT has resistance above at $33 and at $37.68 and support below at $28.13 and at $24.15.
<img alt="screenshot_57.png" src="https://www.benzinga.com/files/u278075/screenshot_57.png" style="height:427px; width:760px" />Read Next:&nbsp;<a href="https://www.benzinga.com/analyst-ratings/23/10/35246361/5-analysts-have-this-to-say-about-barrick-gold">5 Analysts Have This to Say About Barrick Gold</a>

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GOLD

Gold Miner Stocks Rise In Tandem With The General Market: This ETF Offers 2X Leverage

Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) was sliding over 2% Tuesday as the Federal Reserve began its monthly meeting, where the Bank of America expects the central bank <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/09/34697943/bank-of-america-predicts-one-more-fed-rate-hike-in-november">to hold rates steady</a>.
Analysts are mixed on what the Fed will decide by the end of 2023, however. While Bank of America leans toward a final rate hike in November, Goldman Sachs sees the Fed applying a pause in September and November, followed by<a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/09/34693067/goldman-sachs-bets-big-no-more-rate-hikes-in-2023-a-wave-of-cuts-in-2024-heres-why"> several rate cuts in 2024</a>.
With the U.S. teetering on a recession, which is often bullish for spot gold, the price of the commodity could increase over the next few months as investors examine the effects on the <a href="https://www.benzinga.com/economics/macro-economic-events/23/09/34649992/fomc-meeting-preview-what-will-the-federal-reserves-next-move-be">Fed&rsquo;s hawkish policy</a>.
For gold miners, seasonality could boost individual stocks and ETFs like NUGT, because miners will begin receiving assays from their summer drilling programs, which could raise the sector.
For NUGT, the ETF is trading in a possible bull flag pattern under the 50-day simple moving average (SMA) and a break up above that area from the pattern could indicate a longer-term bull cycle is on the horizon.
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NUGT is <a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs">a double-leveraged fund</a> that is designed to outperform the NYSE Arca Gold Miners Index by 200%. The ETF tracks several gold and silver mining companies, with Newmont Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>), Barrick Gold Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) and Franco-Nevada Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) making up 18.83% of its holdings.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle by experienced traders, as opposed to a long-term investment. Leveraged ETFs should never be used by an investor with a buy-and-hold strategy or those who have low-risk appetites.
For traders wanting to play the gold mining index bearishly, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).
The NUGT Chart: NUGT&rsquo;s drop on Tuesday was taking place on lower-than-average volume, which indicates consolidation and coincides with the theory that the ETF is forming the flag of a bull flag formation. The bull flag was formed between Sept. 7 and Tuesday, with the upward-sloping pole created during the first seven trading days of that timeframe and the flag forming since.
<ul>
<li>The measured move of the flag is about 12%, which suggests the ETF could rise toward the $36 dollar mark if NUGT breaks up from the flag on higher-than-average volume. If that happens, the ETF will also regain support at the 50-day SMA, which would give bullish traders more confidence going forward.</li>
<li>Bearish traders want to see the ETF continue to reject the 50-day SMA and then for big bearish volume to come in and drop NUGT down under the eight-day exponential moving average, which would negate the bull flag pattern.</li>
<li>NUGT has resistance above at $33 and at $37.68 and support below at $28.13 and at $24.15.</li>
</ul>
<img alt="screenshot_18.png" src="https://www.benzinga.com/files/u278075/screenshot_18.png" style="height:427px; width:760px" />Read Next:&nbsp;<a href="https://www.benzinga.com/economics/macro-economic-events/23/09/34729141/oecds-gloomy-2024-global-economic-outlook-chinas-decline-will-pull-down-us-euro-g">OECD&#39;s Gloomy 2024 Global Economic Outlook: China&#39;s Decline Will Pull Down US, Euro Growth</a>

Gold Rises, Stocks Fall Ahead of Fed's Decision On Interest Rates: This 2X ETF Tracks Gold Miners And Is Poised For A Break Out

Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) gapped up 0.73% higher on Wednesday, where the ETF ran into a group of sellers who knocked it down toward Tuesday&rsquo;s high-of-day.
Spot gold was rising higher Wednesday after cracks in the U.S. economy start to show, with U.S. job openings coming in lower-than-expected Tuesday and the Bureau of Economic Analysis revising its economic growth projections <a href="https://www.benzinga.com/23/08/34112835/us-gdp-revised-downward-to-2-1-in-q2-reflecting-softer-economic-growth">downward on Wednesday</a>.
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While NUGT usually trades in tandem with spot gold, the ETF was consolidating slightly lower from where it opened, likely for technical analysis reasons.
NUGT is <a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs">a double-leveraged fund</a> that is designed to outperform the NYSE Arca Gold Miners Index by 200%. The ETF tracks several gold and silver mining companies, with Newmont Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>), Barrick Gold Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) and Franco-Nevada Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) making up 27.83% of its holdings.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle by experienced traders, as opposed to a long-term investment. Leveraged ETFs should never be used by an investor with a buy-and-hold strategy or those who have low-risk appetites.
For traders wanting to play the gold mining index bearishly, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).
The NUGT Chart: NUGT has been trading in an uptrend within a rising channel pattern since Aug. 21, making a series of higher highs and higher lows. On Wednesday, the ETF rejected from the top ascending trend line of the channel, indicating a retracement, likely to print another higher low, may be on the horizon.
<ul>
<li>The ETF&rsquo;s most recent higher low was formed on Aug. 25 at $29.41 and the most recent confirmed higher high was printed at the $31.48 mark the day prior. If NUGT retraces on Thursday, Wednesday&rsquo;s high-of-day will serve as the next higher high within the pattern.</li>
<li>Bullish traders want to see NUGT break up from the rising channel pattern, which would cause the ETF to regain the 50-day simple moving average as support (SMA), and then for big bearish volume to come in and drop the stock down from the channel pattern, which could signal an acceleration into a downtrend.</li>
<li>NUGT has resistance above at $37.68 and at $41.31 and support below at $33 and at $28.13.</li>
</ul>
<img alt="screenshot_2693.png" src="https://www.benzinga.com/files/u278075/screenshot_2693.png" style="height:427px; width:760px" />Read Next:&nbsp;<a href="https://www.benzinga.com/markets/asia/23/08/34109337/asia-closes-higher-europe-trading-lower-following-us-futures-global-markets-today-while-us-was-sleep">Asia Closes Higher, Europe Trading Lower Following US Futures - Global Markets Today While US Was Sleeping -&nbsp;</a>

Spot Gold Rises As Cracks In The U.S. Economy Start To Show: This Double-Leveraged Fund Can Accelerate Gains

Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) was rising more than&nbsp;1% on Tuesday in tandem with spot gold, which was moving about 0.5% higher, possibly on new&nbsp;warnings a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/06/32706734/shock-jobs-data-could-hide-the-fact-that-a-recession-is-around-the-corner-warns-eco">recession may be in the cards</a>.
The ETF has been trading sideways since June 1 after a two-day rally on that day and the day prior caused NUGT to rebound 11.51% higher and negate a possible bear flag pattern.
The sideways trading action has caused NUGT to form a <a href="https://www.benzinga.com/money/stock-chart-patterns">double inside bar pattern</a> on the daily chart.
An inside bar pattern indicates a period of consolidation and is usually followed by a continuation move in the direction of the current trend.
An inside bar pattern has more validity on larger time frames (four-hour chart or larger). The pattern has a minimum of two candlesticks and consists of a mother bar (the first candlestick in the pattern) followed by one or more subsequent candles. The subsequent candle(s) must be completely inside the range of the mother bar and each is called an &quot;inside bar.&quot;
A double, or triple inside bar can be more powerful than a single inside bar. After the break of an inside bar pattern, traders want to watch for high volume for confirmation the pattern was recognized.
NUGT is <a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs">a double-leveraged fund</a> that is designed to outperform the NYSE Arca Gold Miners Index by 200%. The ETF tracks several gold and silver mining companies, with Newmont Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>), Barrick Gold Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) and Franco-Nevada Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) making up 26.62% of its holdings.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle by experienced traders, as opposed to a long-term investment. Leveraged ETFs should never be used by an investor with a buy-and-hold strategy or those who have low-risk appetites.
For traders wanting to play the gold mining index bearishly, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here for a free trial</a>.
The NUGT Chart: NUGT negated its bear flag on June 1 by regaining the eight-day exponential moving average as support. The ETF is now trading above the area, forming a double inside bar pattern, which leans bullish because NUGT was trading higher before forming it.
<ul>
<li>Bullish traders want to see NUGT eventually break above the June 1 high-of-day on higher-than-average volume, which would confirm a new uptrend is on the horizon. Bearish traders want to see big bearish volume come in and break NUGT down from the mother bar, which could cause the ETF to back-test the 200-day simple moving average (SMA) as support.</li>
<li>If NUGT were to fall under the 200-day SMA, the ETF could fall into a longer-term downtrend. If the ETF breaks higher, the NUGT is likely to find resistance, at least temporarily, at the 50-day SMA.</li>
<li>NUGT has resistance above at $41.31 and $44.32 and support below at $37.68 and $33.</li>
</ul>
<img alt="screenshot_2489.png" src="https://www.benzinga.com/files/u278075/screenshot_2489.png" style="height:427px; width:760px" />
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Commodities

Markets

Gold Rises Higher As Investors Weigh Recession Probability: This ETF Offers 2X Leverage

Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) gapped down almost 6% lower on Friday, when <a href="https://www.benzinga.com/etfs">the ETF</a> ran into a group of buyers who knocked it down more than 4% from the open.
Spot gold was retracing lower on Friday, possibly printing a higher low at just under $2,000, which aligns with the 21-day exponential moving average.
Investors are now worried the economy is on shaky ground amid the debt ceiling crisis, which the White House has warned could tank the stock market and throw the U.S. into a recession <a href="https://www.benzinga.com/general/politics/23/05/32220872/the-debt-ceiling-crisis-lawmakers-run-against-the-clock-with-one-outcome-guaranteeing-disaster">unless a solution is agreed to</a>.
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In contrast, NUGT, which usually trades in tandem with spot gold, was showing bullish momentum, likely for technical analysis reasons, because the ETF is trading in an uptrend and is in need of a higher low.
NUGT is a double-leveraged <a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs">fund</a> that is designed to outperform the NYSE Arca Gold Miners Index by 200%. The ETF tracks several gold and silver mining companies, with Newmont Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>), Barrick Gold Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) and Franco-Nevada Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) making up 26.62% of its holdings.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle by experienced traders, as opposed to long-term investments. Leveraged ETFs should never be used by an investor with a buy-and-hold strategy or those who have low-risk appetites.
For traders wanting to play the gold mining index bearishly, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).
The NUGT Chart: NUGT reversed course into an uptrend on April 27 and has printed a higher high and a higher low to confirm an uptrend. The higher low was formed on May 1 at $44.11 and the higher high was created at the $51.89 mark on Thursday. On Friday, NUGT fell to the $47 mark, where bullish traders came in and bought the dip, causing the ETF to spike higher.
<ul>
<li>NUGT opened the trading session on the eight-day EMA, which has been guiding the ETF higher since Wednesday but hadn&rsquo;t yet been back tested as support. If the ETF closes the trading session near its high-of-day, NUGT will print a bullish Marubozu candlestick, which could indicate higher prices will come again on Monday.</li>
<li>Bearish traders want to see NUGT top out before forming a higher high, to form a higher low, which would negate the uptrend and suggest a downtrend could be on the horizon. Bearish traders can watch for the ETF to form a possible bearish reversal candlestick, such as a doji or shooting star candlestick, under $51.</li>
<li>NUGT has resistance above at $50 and $54.75 and support below at $44.32 and $41.31.</li>
</ul>
<img alt="screenshot_2388.png" src="https://www.benzinga.com/files/u278075/screenshot_2388.png" style="height:427px; width:760px" />
Read More:&nbsp;<a href="https://www.benzinga.com/etfs/sector-etfs/23/05/32236932/labor-market-stays-tight-april-jobs-report-reveals-growth-in-nonfarm-payrolls-wages">Labor Market Stays Tight: April Jobs Report Reveals Growth In Nonfarm Payrolls, Wages</a>
Photo: Courtesy Unsplash

Bullish On Gold Miners Amid Economic Fears? This ETF Offers 2X Leverage

Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) gapped up 2.45% higher on Wednesday, where the ETF ran into a group of sellers who knocked it down to trade mostly flat.
Spot gold was ticking slightly higher Wednesday as markets retraced ahead of jobs numbers, which are expected to be released on Friday.
Investors are worried the U.S. may be headed for a recession and are awaiting the Federal Reserve&rsquo;s next rate decision. Jobs numbers on Friday are likely to offer insight into how the Fed will move forward with bringing down inflation. According to Bank of America, two out of three recessionary signs have already occurred. <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/04/31664611/3-signs-a-recession-is-coming-just-1-is-left-before-bank-of-america-sounds-the-alar">Read more here...</a>
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NUGT, which usually trades in tandem with spot gold, has been in an uptrend since March 9, trading higher on bullish momentum.
NUGT is a double-leveraged <a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs">fund</a> that is designed to outperform the NYSE Arca Gold Miners Index by 200%. The ETF tracks several gold and silver mining companies, with Newmont Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>), Barrick Gold Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) and Franco-Nevada Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) making up 31.56% of its holdings.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle by experienced traders, as opposed to long-term investment. Leveraged ETFs should never be used by an investor with a buy-and-hold strategy or those who have low-risk appetites.
For traders wanting to play the gold mining index bearishly, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).
The NUGT Chart: NUGT&rsquo;s most recent higher low within its uptrend was printed on March 31 at $41.18 and the most recent confirmed higher high was formed at the $41.89 mark three days prior. On Wednesday, NUGT looked to be printing a bearish hanging man candlestick, which could indicate the next higher high has occurred and a retracement is in the cards.
If NUGT trades lower on Thursday, bullish traders can watch for the ETF to eventually print a bullish reversal candlestick, such as a doji or hammer candlestick, to indicate the next higher low has printed and the uptrend will continue. Bearish traders want to see big bearish volume come in and knock NUGT down under the eight-day exponential moving average, which could accelerate a move to the downside and cause the uptrend to negate.
NUGT has resistance above at $50 and $54.75 and support below at $44.32 and $41.31.
<img alt="screenshot_2287.png" src="https://www.benzinga.com/files/u278075/screenshot_2287.png" style="height:427px; width:760px" />Read Next:&nbsp;<a href="https://www.benzinga.com/economics/macro-economic-events/23/04/31672837/gold-eyes-record-high-on-safe-haven-status-weak-dollar-hopes-of-softening-fed-pet">Is Gold Headed For A Record High? What&#39;s Driving The Rally</a>

This Leveraged ETF Follows Spot Gold Higher As Recession Worries Persist: A Look At The Chart

Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) gapped up 3.4% higher on Wednesday, where the ETF ran into a group of sellers who knocked it down over 4% from the open.
Spot gold was rising higher Wednesday as markets tumbled following news Swiss bank Credit Suisse found material weaknesses in its financial reporting over the past two years due to <a href="https://www.benzinga.com/news/23/03/31357630/credit-suisse-plunges-hard-putting-market-rally-at-risk-whats-going-on-with-the-swiss-bank">ineffective internal controls</a>.
Investors are now worried that the financial sector remains on shaky ground after three U.S. banks collapsed <a href="https://www.benzinga.com/government/23/03/31299908/fdic-shuts-down-silicon-valley-bank-here-are-the-details">over the last week</a>.
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Producer price index data, which came in<a href="https://www.benzinga.com/news/23/03/31361574/producer-price-index-unexpectedly-falls-in-february-swinging-market-expectations-toward-federal-rese"> better-than-expected</a>, did little to boost the market. Investors may be choosing to sit on the sidelines until the Federal Reserve issues its decision on rate hikes next week.
In contrast, NUGT, which usually trades in tandem with spot gold, was consolidating slightly lower, likely for technical analysis reasons, because the ETF hasn&rsquo;t traded sideways or slightly down since March 9.
NUGT is a double-leveraged <a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs">fund</a> that is designed to outperform the NYSE Arca Gold Miners Index by 200%. The ETF tracks several gold and silver mining companies, with Newmont Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>), Barrick Gold Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) and Franco-Nevada Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) making up 31.56% of its holdings.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle by experienced traders, as opposed to a long-term investment. Leveraged ETFs should never be used by an investor with a buy-and-hold strategy or those who have low-risk appetites.
For traders wanting to play the gold mining index bearishly, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).
The NUGT Chart: NUGT negated its downtrend on Monday by rising up above the most recent lower high, which was formed on March 3 at $33.44. Although the downtrend is negated, a new uptrend won&rsquo;t be confirmed until the ETF retraces to print a higher low above $28.74.
When NUGT spiked higher on Monday, the ETF regained the 200-day simple moving average (SMA), which suggests a new bull cycle could be on the horizon. If NUGT retraces to print a higher low over the next few days, bullish traders want to see the ETF form a bullish reversal candlestick, such as a doji or hammer candlestick, above the 200-day SMA, which could provide a solid entry position.
Bearish traders may want to wait for NUGT to rise up to reach the 50-day SMA, which is likely to act as at least temporary resistance. If the ETF rises to that level and prints a bearish reversal candlestick there, it could provide a solid entry into DUST.
NUGT has resistance above at $37.68 and $41.31 and support below at $33 and $28.13.
<img alt="screenshot_2251.png" src="https://www.benzinga.com/files/u278075/screenshot_2251.png" style="height:427px; width:760px" />Next:&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/03/31323021/banking-volatility-spills-over-into-oil-market-what-investors-need-to-know">Banking Volatility Spills Over Into Oil Market - What Investors Need To Know</a>

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Looking To Play The Gold Miner Sector To The Upside? This ETF Offers 2X Leverage

Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) spiked up over 5% at one point on Tuesday.
The short-term rally was in tandem with the S&amp;P 500, which temporarily surged higher between 12:40 p.m. and 12:55 p.m. in a bullish response to Jerome Powell starting a <a href="https://www.benzinga.com/news/23/02/30775031/the-market-cant-make-up-its-mind-neither-can-the-federal-reserve-why-fed-chair-jerome-powell-says-ce">question-and-answer session</a>&nbsp;at the&nbsp;Economic Club in Washington, D.C. By 1:30 p.m. both NUGT and the S&amp;P 500 had retraced the move higher in its entirety and the S&amp;P 500 printed a fresh low-of-day.
Spot gold began trading in a sharp uptrend on Nov. 4, 2022, and on Jan. 4, <a href="https://www.benzinga.com/markets/commodities">the commodity</a> regained the 200-day simple moving average (SMA) as support. Regaining that important bellwether indicator was bullish and the commodity continued upwards in its trend until topping out at the $1,959.74 mark on Feb. 2.
In contrast, NUGT, which usually trades in tandem with spot gold, topped out on Jan. 25 at $46.04, preceding spot gold&rsquo;s bearish reversal.
Whether or not NUGT will continue lower in its new downtrend and enter a bear cycle, or if the ETF is attempting to backtest the 200-day SMA and reverse upwards from the level, has&nbsp;yet to be seen. Mergers and acquisitions have started to take place among&nbsp;gold miners, however, which is generally bullish for the sector.
On Monday, it was announced that&nbsp;Newmont Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>) <a href="https://www.benzinga.com/m-a/23/02/30724896/newmont-offers-to-acquire-gold-producer-newcrest-mining">submitted a non-binding proposal</a> to acquire 100% of the issued share capital of Australia-based Newcrest Mining Limited. Traders and investors are hoping the news will kick off a series of mergers and acquisitions among gold miners to lift the sector higher.
<a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs">NUGT</a> is a double-leveraged fund that is designed to outperform the NYSE Arca Gold Miners Index by 200%. The ETF tracks several gold and silver mining companies, with Newmont Corp, Barrick Gold Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) and Franco-Nevada Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) making up 31.56% of its holdings.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle by experienced traders, as opposed to a long-term investment. Leveraged ETFs should never be used by an investor with a buy-and-hold strategy or those who have low-risk appetites.
For traders wanting to play the gold mining index bearishly, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here for a free trial</a>.
The NUGT Chart: NUGT negated its uptrend on Feb. 1 by printing a lower high at $44.99 and on Monday, the ETF formed a lower low, which confirmed a downtrend is in play. If NUGT continues to trade lower over the next few trading days, the high-of-day on Tuesday will serve as the next lower high within the trend.
<ul>
<li>If NUGT falls again on Wednesday and Thursday, the ETF may find support at the 200-day SMA and print a reversal candlestick, such as a <a href="https://www.benzinga.com/money/how-to-read-candlestick-charts">doji or hammer candlestick</a>, at that indicator. If NUGT falls below the 200-day, a longer-term bearish cycle could be on the horizon.</li>
<li>The recent pullback into a downtrend has allowed NUGT&rsquo;s relative strength index (RSI) to drop from about 68% to 42%. When a stock&rsquo;s or ETF&rsquo;s RSI nears or reaches the 70% level, it becomes overbought, which can be a sell signal for technical traders.</li>
<li>Traders who are bullish on the gold mining sector will want to watch for signs the current pullback on NUGT is coming to an end and a bounce is on the horizon. The ETF could be forming the handle of a cup-and-handle pattern, which would be bullish if NUGT eventually breaks up from the downward-sloping channel that makes up the second part of the formation.</li>
<li>NUGT has resistance above at $41.31 and $44.32 and support below at $37.68 and $33.</li>
</ul>
<img alt="nugt_feb._7.png" src="https://www.benzinga.com/files/u278075/nugt_feb._7.png" style="height:427px; width:760px" />
Read Next:&nbsp;<a href="https://www.benzinga.com/23/02/30768122/gold-slipped-down">Gold Slipped Down</a>
Photo: Shutterstock

What To Watch On This 2X Leveraged ETF (NUGT) As Gold Miner Merging Season Kicks Off

Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) closed&nbsp;2.85% higher on Friday, in tandem with the price of spot gold, which has surged about 5% <a href="https://www.benzinga.com/topic/gold">since Jan. 6</a>.
Gold has been trading in a sharp uptrend since Nov. 4, and on Jan. 4, the commodity regained the 200-day simple moving average (SMA) as support, indicating a new bull run could be on the horizon.
NUGT has increased over 9% since Jan. 6, which <a href="https://www.benzinga.com/trading-ideas/long-ideas/22/11/29914148/feeling-bullish-on-newmont-barrick-gold-and-franco-nevada-this-etf-offers-2x-leverage">Benzinga noted was likely to occur on Dec. 22</a>.
Traders who believe the price of gold miner stocks is headed higher still may choose to play the upward&nbsp;trajectory through the Direxion ETF.
NUGT is a double-leveraged <a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs">fund</a> that is designed to outperform the NYSE Arca Gold Miners Index by 200%. The ETF tracks several gold and silver mining companies, with Newmont Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>), Barrick Gold Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) and Franco-Nevada Corp (TSX: FNV) making up 32.42% of its holdings.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to a long-term investment by experienced traders. Leveraged ETFs should never be used by an investor with a buy-and-hold strategy or those who have low risk appetites.
For traders wanting to play the gold mining index bearishly, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here for a free trial</a>.
The NUGT Chart: NUGT has been trading in a fairly consistent uptrend since Nov. 3, when the ETF reversed course off the $21.70 mark. The most recent higher low was formed on Jan. 5 at $37.65 and the most recent confirmed higher high was printed at the $40.31 mark the day prior.
<ul>
<li>On Friday, NUGT closed the trading session near its high-of-day price, which caused the ETF to print a bullish Marubozu candlestick. The candlestick indicates higher prices may come on Tuesday, but an eventual pullback is likely on the horizon.</li>
<li>A retracement is likely in the cards because NUGT&rsquo;s relative strength index (RSI) is measuring in at abut 71%. When a stock&rsquo;s or ETF&rsquo;s RSI reaches or exceeds the 70% level, it becomes overbought, which can be a sell signal for technical traders. It should be noted that gold&rsquo;s RSI is also in overbought territory.</li>
<li>NUGT has resistance above at $50 and $54.75 and support below at $44.32 and $41.31.</li>
</ul>
<img alt="nugt_jan._15.png" src="https://www.benzinga.com/files/u278075/nugt_jan._15.png" style="height:427px; width:760px" />Read Next:&nbsp;<a href="https://www.benzinga.com/money/best-gold-stocks">Best Gold Stocks Right Now &bull; Updated Daily</a>
Photo via Shutterstock.

As Gold Soars, This 2X Leveraged Fund Is Climbing In Tandem: What To Watch

The&nbsp;Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) was trading down Thursday, in tandem with <a href="https://www.benzinga.com/topic/precious-metals">spot gold</a>, which was declining about 1.5% to trade <a href="https://www.benzinga.com/money/best-gold-stocks">near the $1,785 mark</a>.
The gold miners sector, which often moves in tandem with gold prices, recently enjoyed a bull cycle that began on Nov. 4 and caused NUGT to soar almost 68% higher between that date and Dec. 13. Since then, NUGT has entered a downtrend.
Since Dec. 1, gold has been trading near the 200-day simple moving average and the commodity most recently crossed above the level on Tuesday. On Thursday, gold was retracing to test the 200-day SMA as support. If it can hold above the area, NUGT could make another run north.
NUGT is a double leveraged <a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs">fund</a> that is designed to outperform the NYSE Arca Gold Miners Index. The ETF tracks a number of gold and silver mining companies through its holdings, with Dreyfus Government Cash Management Funds Institutional weighted at 62.34%.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to a long-term investment by experienced traders. Leveraged ETFs should never be used by an investor with a buy and hold strategy or those who have low risk appetites.
For traders who want to play the gold miners sector to the downside, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).&nbsp;
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The NUGT Chart: NUGT reversed into a downtrend on Dec. 13, confirmed by printing a lower high at the $36.12 mark on Wednesday. On Thursday, the ETF fell lower but may have formed a higher low on the daily chart to negate the downtrend.
<ul>
<li>On Thursday, NUGT was working to print a <a href="https://www.benzinga.com/money/how-to-read-candlestick-charts">hammer candlestick</a> on the daily chart, which could indicate higher prices are in the cards for Friday. If that occurs, traders would like to see the ETF surge up above $37, which would confirm a new uptrend.</li>
<li>If NUGT trades higher on Friday, traders want to see the ETF regain the eight-day exponential moving average (EMA) as support. If the ETF can&rsquo;t pop up above the level, the eight-day EMA will cross below the 21-day EMA, which would be bearish.</li>
<li>NUGT has resistance above at $37.68 and $41.31 and support below at $33 and $28.13.</li>
</ul>
<img alt="nugt_dec._22.png" src="https://www.benzinga.com/files/u278075/nugt_dec._22.png" style="height:427px; width:760px" />Read Next:&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/12/29964062/2023-predictions-from-standard-chartered-bitcoin-5-000-gold-soars-and-trouble-for-b">2023 Predictions From Standard Chartered: Bitcoin $5,000, Gold Soars, And Trouble For Biden</a>
Photo via Shutterstock.&nbsp;

Looking To Trade The Gold Miner Sector Bullishly? This 2X Leveraged Fund May Be Reversing Course

Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) gapped up 3% to start Wednesday&rsquo;s trading session and after some early session volatility, the ETF surged an additional 3% from the open due to bullish <a href="https://www.benzinga.com/topic/precious-metals">price action across&nbsp;the gold sector</a>.
The climb higher&nbsp;was in tandem with the S&amp;P 500, which closed&nbsp;up about 3.15% higher after Fed Chair Jerome Powell suggested during his Brookings Institution speech that the central bank could begin easing back on its <a href="https://www.benzinga.com/top-stories/22/11/29911856/stocks-rip-higher-after-powell-says-fed-could-dial-back-interest-rate-hikes-as-soon-as-the-december">interest rate hikes in December</a>.
The gold miners sector recently reversed into a bull-cycle, after a long-term downtrend brought NUGT down 75% from its April 18 52-week high of $82.86 to a Sept. 26 52-week low of $20.30.
NUGT is a double-leveraged fund that is designed to outperform the NYSE Arca Gold Miners Index by 200%. The ETF tracks a number of gold and silver mining companies, with Newmont Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>), Barrick Gold Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) and Franco-Nevada Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) making up 32.42% of its holdings.
It should be noted that <a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs">leveraged ETFs</a> are meant to be used as a trading vehicle as opposed to a long-term investment by experienced traders. Leveraged ETF&rsquo;s should never be used by an investor with a buy-and-hold strategy or those who have low-risk appetites.
For traders wanting to play the gold mining index bearishly, Direxion offers Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here for a free trial</a>.
The NUGT Chart: NUGT reversed into its uptrend on Nov. 3 and has since made a consistent series of higher highs and higher lows. NUGT&rsquo;s most recent higher low was formed on Monday at $30.82 and the most recent confirmed higher high was printed at the $34.46 mark on Nov. 23.
<ul>
<li>NUGT closed the trading session near its high-of-day price, which indicates higher prices may come again on Thursday. The second most likely scenario is that NUGT will print an inside bar, which would lean bullish for a continuation later in the week.</li>
<li>NUGT is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. When the ETF eventually retraces to form its next higher low, traders can watch for a bullish reversal candlestick to print above the two moving averages.</li>
<li>If NUGT continues to trend higher on Thursday, the ETF&rsquo;s relative strength index (RSI) will reach near the 70% level. When a stock or ETF&rsquo;s RSI reaches that level, it becomes overbought, which can indicate a pullback is on the horizon.</li>
<li>NUGT has resistance above at $37.68 and $41.31 and support below at $33 and $28.13.</li>
</ul>
<img alt="nugt_nov._30.png" src="https://www.benzinga.com/files/u278075/nugt_nov._30.png" style="height:427px; width:760px" />
See Also:&nbsp;<a href="https://www.benzinga.com/markets/commodities/22/09/28868851/could-more-countries-start-using-gold-coins-to-fight-inflation">Could More Countries Start Using Gold Coins to Fight Inflation?</a>

Feeling Bullish On Newmont, Barrick Gold And Franco-Nevada? This ETF Offers 2X Leverage

Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) shot up over 6% higher after the market opened, but the move higher was hampered by the general market, which saw the S&amp;P 500 falling about 0.7%.
The gold miners <a href="https://www.benzinga.com/money/best-sectors-to-invest-in-right-now/">sector</a> recently enjoyed a long bull-cycle, which lasted from Jan. 28 to April 18 of this year and caused NUGT to soar 102% higher during that timeframe. Since late April, NUGT has erased all of its gains, however, plunging 63% from its 52-week high of $82.86.
NUGT is a double leveraged fund that is designed to outperform the NYSE Arca Gold Miners Index. The ETF tracks a number of gold and silver mining companies through its four holdings, with the VanEck Gold Miners ETF (ARCA: GDX) and the U.S. Dollar making up 91.27% of its weighted holdings.
The other two funds making up the remainder of NUGT&rsquo;s weightings are Goldman Sachs Trust Financial Square Treasury Instruments Fund Institutional, weighted at 8.49% and Dreyfus Government Cash Management Funds Institutional, with a 0.23% weighting.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to a long-term investment by experienced traders. Leveraged ETF&rsquo;s should never be used by an investor with a buy and hold strategy or those who have low risk appetites.
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here</a> for a free trial.
The NUGT Chart: Despite falling to trade mostly flat intraday on Friday, when NUGT reached its high-of-day, the ETF confirmed it&#39;s now trading in an uptrend by printing a higher high above the July 18 high of $31.52. On July 20, NUGT printed a higher low above the July 14 52-week low of $28.13, which negated the downtrend.
<ul>
<li>NUGT is trading in a rising channel pattern between two parallel trendlines. The pattern is considered to be bullish unless the ETF breaks down from the lower ascending trendline on higher-than-average volume. Unfortunately, the rising channel paired with the steep downtrend that occurred between June 3 and July 14 may have settled NUGT into a bear flag pattern.</li>
<li>If the bear flag pattern is recognized, traders may choose to take a position in the leveraged gold miners ETF bear, Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>).</li>
<li>NUGT is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The ETF is also trading under the 50-day and 200-day simple moving averages, which indicates gold is currently in a bear market.</li>
<li>NUGT has resistance above at $33 and $37.68 and support below at $28.13 and $24.15.</li>
</ul>
<img alt="nugt_july_22.png" src="https://www.benzinga.com/files/u278075/nugt_july_22.png" style="height:427px; width:760px" />
See Also:&nbsp;<a href="https://www.benzinga.com/markets/22/07/28072053/eliminating-myths-of-buy-and-hold">Eliminating Buy And Hold Myths</a>

Is Gold About To Turn Bullish? A Look At Direxion Daily Gold Miners Index Bull (NUGT)

Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) was trading down about 2% on Monday in continued consolidation after plunging over 6% lower on Thursday.
The gold miners sector recently enjoyed a long bull-cycle, which lasted from Jan. 28 to April 18 of this year and caused NUGT to soar 102% higher during that timeframe. Since late April, NUGT has erased all of its gains, however, plunging 54% from its 52-week high of $82.86.
NUGT is a double leveraged <a href="https://etfdb.com/etf/NUGT/#holdings">fund</a> that is designed to outperform the NYSE Arca Gold Miners Index. The ETF tracks a number of gold and silver mining companies through its four holdings, with the VanEck Gold Miners ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gdx#NYSE">GDX</a>) and the U.S. Dollar making up 91.27% of its weighted holdings.
The other two funds making up the remainder of NUGT&rsquo;s weightings are Goldman Sachs Trust Financial Square Treasury Instruments Fund Institutional, weighted at 8.49% and Dreyfus Government Cash Management Funds Institutional, with a 0.23% weighting.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to a long-term investment by experienced traders. Leveraged ETF&rsquo;s should never be used by an investor with a buy and hold strategy or those who have low risk appetites.
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here</a> for a free trial.
The NUGT Chart: On Friday and Monday, NUGT was trading sideways within Thursday&rsquo;s trading range, which has settled the ETF into a double inside bar pattern on the daily chart. The pattern leans bearish in this case because NUGT was trading low before forming the pattern, but traders can watch for a break up or down from Thursday&rsquo;s mother bar on higher-than-average volume to gauge future direction.
<ul>
<li>NUGT is also trading in a confirmed downtrend, with the most recent lower high printed on June 16 at $44.24 and the most recent lower low formed at the $37.68 mark on Thursday. If NUGT breaks bearishly from the inside bar pattern, the downtrend will continue, but if the ETF breaks bullishly from the formation, the downtrend will be negated and a reversal to the upside could be in the cards.</li>
<li>A bounce to the upside is likely to come over the next few trading days because NUGT has developed bullish divergence on the daily chart. Bullish divergence occurs when a stock makes a series of lower lows but its relative strength index (RSI) makes a series of higher lows. For the divergence to correct, NUGT will either need to trade higher or plummet low enough to drop the RSI below 30%.</li>
<li>For traders looking to play a leveraged gold miners ETF bear, Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>) is an option.</li>
<li>NUGT has resistance above at $41.31 and $44.32 and support below at $37.68 and $33.</li>
</ul>
<img alt="nugt_june_27.png" src="https://www.benzinga.com/files/u278075/nugt_june_27.png" style="height:427px; width:760px" />
See Also:&nbsp;<a href="https://www.benzinga.com/money/best-gold-stocks/">Best Gold Stocks Right Now &bull; Updated Daily</a>

Movers

Market Vectors ETF Trust Market Vectors Gold Miners

Here's What To Watch On Direxion Daily Gold Miners Index Bull 2X Shares (NUGT)

Image by <a href="https://pixabay.com/users/publicdomainpictures-14/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=163519">PublicDomainPictures</a> from <a href="https://pixabay.com/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=163519">Pixabay</a>
The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
<h2>A Brief History of Gold</h2>
No other metal in all of human history has garnered more attention, lust and wonder than gold. Mankind&rsquo;s preoccupation with this precious metal dates back to ancient times when it was first discovered around 4,000 B.C. in eastern Europe. The earliest use of gold as currency came in Egypt with the introduction of the shekel as a recognized standard of exchange for trade. Gold&rsquo;s prominence in the financial realm didn&rsquo;t stop there as time marched on civilization after civilization used gold as their main currency or as a store of wealth.
The historic strength and relevance of gold has reinforced investors in the modern age to see gold as an effective hedge against inflation.
<img alt="screenshot_2021-11-23_at_2.36.28_pm.png" src="https://www.benzinga.com/files/images/2021/November/23/screenshot_2021-11-23_at_2.36.28_pm.png" style="height:543px; width:650px" />
Past performance is not indicative of future resuts.
<iframe frameborder="0" height="300" src="https://data.worldbank.org/share/widget?end=2020&amp;indicators=FP.CPI.TOTL.ZG&amp;locations=US&amp;start=1960&amp;view=chart" width="450"></iframe>
Chart by <a href="https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?end=2020&amp;locations=US&amp;start=1960&amp;view=chart">World Bank Group</a>
Inflation isn&rsquo;t the only driver of gold. Interest rates, economic and political uncertainty, currency strength or weakness and gold production all play roles in driving the price of gold with economic uncertainty remaining the most influential of these factors. This tie to uncertainty and market fears makes the price of gold susceptible to price fluctuations based on news headlines especially ones that surprise the markets.
With so many factors influencing the price of gold, how should you think about trading it?
Many different investment vehicles are available to traders today from futures contracts for gold to exchange-traded funds (ETFs) that hold physical gold in vaults. There are even other ETFs that own shares of gold mining and production companies &mdash; offering some unique benefits not held by other gold trading options.&nbsp;
<h2>Gold vs Gold Miners: The Difference is in the Leverage</h2>
Gold miners are companies that are involved in the discovery, mining and production of gold. Because their main product is gold, it makes sense that the value of mining companies is positively correlated to the price of gold. This positive correlation gives traders the opportunity to participate in the price movements of gold without having to buy physical gold or futures contracts directly.
While gold mining stocks track the price of gold fairly well, they tend to outperform the price of gold in bull and underperform in bear markets because of something called operating leverage. In simple terms, this refers to the shrinking or growing of a gold miners&rsquo; profit margins. Growing profit margins mean that a gold mining company is increasingly cash rich and therefore worth more as a company, at least on paper. Shrinking margins lead to a decrease in valuations due to decreased revenue and shrinking cash.
The following example will help you more easily understand this. If it costs a miner $650 to mine 1 ounce of gold and the current price of gold is $1,650 per oz, the profit margin would be $1,000. However, if the current price of gold increased by 10% from $1,650 per ounce (oz) to $1,815 per oz, and the cost to mine that ounce of gold remained at $650, the miner&rsquo;s profit margin would have increased by 16.5% from $1,000 per oz to $1,165 per oz.
In a real-world scenario, the math would not be quite so simple. Costs per ounce would normally increase alongside the price of gold, sometimes outpacing gold price increases in bear markets which would eat into profit margins and often not keeping pace with increasing gold prices in bull markets, therefore, increasing profit margins.
The <a href="https://www.statista.com/statistics/272422/gold-price-and-costs-of-mining-since-2005/">chart below</a> shows the real-world scenario of operating leverage in action during the 2005-2010 gold bull market.&nbsp;
<img alt="screenshot_2021-11-23_at_2.01.57_pm.png" src="https://www.benzinga.com/files/images/2021/November/23/screenshot_2021-11-23_at_2.01.57_pm.png" style="height:470px; width:650px" />
<h2>There&rsquo;s an ETF for That</h2>
This correlation and sometimes outperformance of gold mining stocks compared to the price of gold gives traders an opportunity to participate in the outsized gains experienced by gold mining stocks.
A great way to diversify this short-term trade is by using an ETF, like the ones mentioned, that holds a basket of many different gold mining stocks. This allows a trader to benefit from exposure to more than one gold mining stock at a time.
Direxion offers a few different types of gold miner ETFs that fall into 2 different categories: Gold Miners and Junior Gold Miners. The Daily Gold Miners Index Bull (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) and (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>) Bear 2X Shares both track the NYSE Arca Gold Miners Index. This index is made up of publicly traded companies that are involved in the mining and production of gold throughout the world.
The Daily Junior Gold Miners Index Bull (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnug#NYSE">JNUG</a>) and Bear (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jdst#NYSE">JDST</a>) 2X Shares track the MVIS Global Junior Gold Miners Index. This index is made up of both foreign and domestic micro, small and mid-cap companies that are involved in the exploration of new mining deposits and or are currently mining gold. These companies are more speculative by nature. Therefore, their values tend not to be well correlated with the price of gold. Making them a less attractive trade for those looking to trade around the price of gold without conflating variables.&nbsp;
We believe the Daily Gold Miners Bull and Bear 2x Shares, however, offer an excellent opportunity for traders looking for exposure to some of the world&rsquo;s largest and most well-known gold mining companies. Names such as Barrick Gold, Newmont and Franco Nevada top the list of companies in these ETFs&rsquo; holdings. Not only can a trader make long plays using the Gold Miners Bull 2X Shares NUGT but a trader could also look to profit from a selloff in gold and gold miners using the Gold Miners Bear 2X Shares DUST.
Keep in mind that both of these ETFs are leveraged to seek 2 times the daily return of the underlying index but should not be expected to maintain this 2-time return over periods of time longer than 1 day because they are leveraged every day. Thus both NUGT and DUST are only appropriate for traders with short-time horizons, such as those who are looking to trade gold market swings driven by economic or political uncertainty.
Leveraged and inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments.
An investor should carefully consider a Fund&rsquo;s investment objective, risks, charges, and expenses before investing. A Fund&rsquo;s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund&rsquo;s prospectus and summary prospectus call 866-301-9214 or visit our website at direxion.com. A Fund&rsquo;s prospectus and summary prospectus should be read carefully before investing.
CUSIP Identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by Standard and Poor&rsquo;s Financial Services, LLC, and are not for use or dissemination in any manner that would serve as a substitute for a CUSIP service. The CUSIP Database, &copy;2011 American Bankers Association. &ldquo;CUSIP&rdquo; is a registered trademark of the American Bankers Association.
Shares of the Direxion Shares are bought and sold at market price (not NAV) and are not individually redeemed from a Fund. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 pm EST (when NAV is normally calculated) and do not represent the returns you would receive if you traded shares at other times. Brokerage commissions will reduce returns. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Some performance results reflect expense reimbursements or recoupments and fee waivers in effect during certain periods shown. Absent these reimbursements or recoupments and fee waivers, results would have been less favorable.
Direxion&nbsp;Shares Risks&nbsp;&ndash; An investment in each Fund involves risk, including the possible loss of principal. The Fund is non diversified and include risks associated with the Fund&rsquo;s concentrating its investments in a particular industry, sector, or geography which can increase volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. Risks of t he Fund include Effects of Compounding and Market Volatility Risk, Leverage Risk, Market Risk, Natural Disaster/Epidemic and Market Disruption Risk, Counterparty Risk, Rebalancing Risk, Intra Day Investment Risk, Daily Index Correlation/Tracking Risk, Other Investment Companies (including ETFs) Risk, and risks specific to the Consumer Discretionary and Industrials Sectors and the Airline and Travel and Vacation Industries. The market prices of internet securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities as these securities may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices. Please see the summary and full prospectus for a more complete description of these and other risks of the Fund.
Distributor for Direxion Shares:&nbsp;Foreside Fund Services, LLC.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Emerging Markets

JDST

JNUG

Leveraging the World's Most Precious Metal and its Miners

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Amid&nbsp;rallies for riskier assets late in 2020, once-hot gold is retreating and those declines are weighing on miners, which often overshoot bullion&#39;s price action in either direction.
What Happened: Over the past month, the largest gold-backed exchange traded fund is lower by 1.38%, and the biggest ETF dedicated to gold miners is more than three times as bad, trading down 5.57%.
That would appear to be a perfect storm in which to embrace the Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>) while ignoring the Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>).
The bullish NUGT attempts to deliver double the daily performance of the NYSE Arca Gold Miners Index, while the bearish DUST tries to mirror <a href="https://www.direxion.com/product/daily-gold-miners-bull-bear-2x-etfs">double the daily inverse performance</a> of that index. That index is the benchmark for the largest plain vanilla miners ETF.
Why It&#39;s Important: Clearly, with coronavirus vaccines coming to market and expectations in place that global stocks will trade higher next year, DUST looks like the easy way to go among leveraged gold miner&nbsp;ETFs, but there are reasons to consider NUGT&#39;s rebound prospects.
&ldquo;While the gold price is experiencing near-term weakness, gold companies are still enjoying ample free cash flow. Many companies increased dividend payouts with third quarter results,&rdquo; <a href="https://www.vaneck.com/blogs/gold-investing/gold-may-offer-safeguards-beyond-the-vaccine/">according to VanEck research</a>. &ldquo;Scotiabank figures the senior and intermediate producers they cover now have an average yield of 2.0%, which, per Bloomberg data, surpasses the average yield of the S&amp;P 500&nbsp;of approximately 1.5%.&rdquo;
That&#39;s good news for NUGT, but there&#39;s also a short-term bull case for the bearish DUST.
&ldquo;Bullion ETP selling suggests that some investors saw gold solely as a pandemic trade, ignoring longer-term economic, financial and other ramifications,&rdquo; notes VanEck. &ldquo;With jewelry and central bank demand weakened by the pandemic, gold will likely remain under pressure until ETP flows turn positive. As such, it looks like the current consolidation might continue through the first half of 2021.&rdquo;
What&#39;s Next: Still, traders shouldn&#39;t ignore NUGT.
&ldquo;In the longer term, there are unknown side effects from the overall clinical, psychological, social and economic shocks of the pandemic,&rdquo; according to VanEck. &ldquo;The legacy of COVID-19 could transform political attitudes, global supply chains, demand patterns, work habits, risk tolerance and business practices. While the news of vaccines is welcomed by all, a return to normal is far from guaranteed. Many risks remain that we believe can drive gold to new highs.&rdquo;
One more point in NUGT&#39;s favor: Gold historically performs better when a Democrat is in the White House.
Photo courtesy Pixabay.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

NUGT Or DUST? Or Both? Slumping Gold Miners Could Dip, Then Rebound In Short Term

&nbsp;
The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Prior to March, traders who wanted to go long or short gold miners with 3x leverage had a number of options.&nbsp;
But in the midst of the market volatility that month, Direxion reduced the exposure of its four leveraged gold funds&mdash;Direxion Daily Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>), Direxion Daily Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>), Direxion Daily Junior Gold Miners Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnug#NYSE">JNUG</a>), and Direxion Daily Junior Gold Miners Index Bear 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jdst#NYSE">JDST</a>)&mdash;from 3x leverage to 2x leverage.&nbsp;
This left traders without a similar product that provided 3x or -3x leverage to gold.
Nine months later, two new products have stepped in to fill the void. The MicroSectors Gold Miners 3x Leveraged ETN (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gdxu#NYSE">GDXU</a>) and MicroSectors Gold Miners -3x Inverse Leveraged ETN (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gdxd#NYSE">GDXD</a>), launched on Dec. 3, offer +3x leverage and -3x inverse leverage linked to gold mining stocks.&nbsp;
GDXU and GDXD are exchange traded notes linked to the S-Network MicroSectors Gold Miners Index (MINERS). The index, launched on August 20, is a market cap-weighted index designed to track the performance of two exchange traded funds &ndash; the VanEck Vectors Gold Miners ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gdx#NYSE">GDX</a>) and the VanEck Vectors Junior Gold Miners ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gdxj#NYSE">GDXJ</a>). &nbsp;
The idea is by tracking the daily performance of GDX and GDXJ, the MINERS index will create a comprehensive gold mining benchmark.
&ldquo;The underlying GDX and GDXJ ETFs represent the benchmarks for senior and junior gold mining companies,&rdquo; said Scott Acheychek, president of REX Shares, the firm that oversees the products.&nbsp;
The ETNs are senior, unsecured obligations of the Bank of Montreal, and attempt to deliver 3x and -3x the daily return of the index. The ETNs reset daily so traders should be aware that their performance can differ over longer periods of time.
&nbsp;
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

New ETFs

MicroSectors Gold Miners -3X Inverse Leveraged ETNs

GDXD

GDXJ

MicroSectors Gold Miners 3X Leveraged ETN

GDXU

The 3x Gold Trade Is Back

Direxion is dramatically altering the time frame for shifting 10 of its geared exchange traded funds to double from triple leverage, saying that those changes will go into effect after the close of U.S. markets on March 31 after originally being slated to be implemented on May 19.
Citing <a href="http://www.direxion.com/press-release/direxion-changes-objectives-of-ten-leveraged-funds-to-address-extreme-market-conditions-while-also-closing-eight-funds-due-to-limited-interest-since-launch">an unprecedented spike</a> in market volatility at the hands of the COVID-19 pandemic, Direxion said last week it planned to reduce the daily leverage exposure on 10 well-known ETFs, including the Direxion Daily Gold Miners Index Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) and the Direxion Daily Gold Miners Index Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>), to 2x from 3x.
&ldquo;Effective after market close on March 31, 2020 each Fund&rsquo;s investment objective and strategy will change to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 200% or -200%, as applicable,&rdquo; <a href="http://www.direxion.com/">said the issuer in a statement</a> released Friday after the market close. That timeline has now been moved up substantially after the firm received expedited approval from the SEC.
Other Funds Affected
In addition to the aforementioned NUGT and DUST, which are two of the most heavily traded leveraged ETFs in the U.S., the small-cap counterparts &ndash; Direxion Daily Junior Gold Miners Index Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnug#NYSE">JNUG</a>) and the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSE&nbsp;JDST) are also being reduced to double leverage.
Today, JNUG <a href="http://www.direxion.com/press-release/direxion-daily-gold-miners-index-bull-3x-shares-and-direxion-daily-junior-gold-miners-index-bull-3x-shares-underexposed-at-3-27-2020-market-open">traded with 260%</a> leverage instead of the usual 300%.
At a time of <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/03/15686241/leverage-bullish-oil-etn-gets-an-upsizing-as-crude-prices-falter">increased duress in the oil patch</a>, Direxion will ratchet the Direxion Daily Energy Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) and the Direxion Daily Energy Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ery#NYSE">ERY</a>) down to 2x status. The same treatment is being applied to the ultra-volatile Direxion Daily S&amp;P Oil &amp; Gas Exp. &amp; Prod. Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gush#NYSE">GUSH</a>) and the Direxion Daily S&amp;P Oil &amp; Gas Exp. &amp; Prod. Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/drip#NYSE">DRIP</a>).
The Direxion Daily MSCI Brazil Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brzu#NYSE">BRZU</a>) and the Direxion Daily Russia Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rusl#NYSE">RUSL</a>) are the other affected funds. All 10 products will see &ldquo;3X&rdquo; dropped from their names with &ldquo;2X&rdquo; moving in.
Wild Moves
At a times of elevated volatility, leveraged ETFs can deliver extreme moves in rapid fashion, testing uninitiated traders&#39; appetite for risk. For example, both the bullish JNUG and bearish JDST are saddled with losses this month to the tune of an average drop of 85.5%.
Geared ETFs use derivatives to obtain leverage, but that leverage isn&#39;t obtained on a dollar for dollar basis. Rather, if a geared fund has $100 million in assets, it <a href="http://www.direxion.com/wp-content/uploads/2012/09/Understanding_Exchange_Traded_Funds.pdf">must maintain $300 million</a> worth of exposure to the index it tracks.
In volatile markets, the need for daily rebalancing can hinder outcomes because a levered fund may increase exposure to an index in advance of a large decline and an inverse leveraged ETF can reduce exposure in advance of big rally.

Emerging Market ETFs

BRZU

DRIP

GUSH

RUSL

Direxion Is Accelerating The Shifts Of 10 ETFs From 3x Leverage To 2x Leverage As Volatility Remains High

At a time when investors are desperate for safe-haven assets, gold and the related exchange traded funds aren&#39;t providing the expected shelter from the storm. This month, the SPDR Gold Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gld#NYSE">GLD</a>), which had been on a torrid pace entering March, is lower by 5.7%.
Gold miners ETFs have been much, much worse. On Wednesday alone, the VanEck Vectors Gold Miners ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gdx#NYSE">GDX</a>) plunged nearly 23%, bringing its month-to-date loss to 32.67%. That after gold notched its biggest one-day rally since 2016 on Tuesday.
From a technical standpoint, it appears bears control the gold future market right now.
&ldquo;Technically, April gold futures bears have the firm overall near-term technical advantage,&rdquo; <a href="https://www.kitco.com/news/2020-03-18/Gold-prices-sharply-down-as-dread-pervasive-in-marketplace.html">reports </a><a href="https://www.kitco.com/news/2020-03-18/Gold-prices-sharply-down-as-dread-pervasive-in-marketplace.html">Kitco News</a>. &ldquo;Gold bulls&#39; next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,600.00. Bears&#39; next near-term downside price breakout objective is pushing prices below solid technical support at this week&rsquo;s low of $1,450.90.&rdquo;
See Also: <a href="https://www.benzinga.com/government/20/03/15587517/trump-signs-coronavirus-relief-bill-ecb-injects-821b-in-liquidity-japan-considers-cash-payouts">Trump Signs Coronavirus Relief Bill, ECB Injects $821B In Liquidity, Japan Considers Cash Payouts</a>
<h3>Bearish Betrayal...Or Not</h3>
Proving <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/03/15555152/3-leveraged-etfs-for-the-feds-move-to-near-zero">that leveraged ETFs</a>, particularly those involving gold miners, must be treated as short-term instruments, all four of the bellwether geared funds focusing on this segment are in red this month. Yes, even in the inverse products.
Take the case of Direxion Daily Gold Miners Index Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>). DUST attempts to deliver <a href="http://www.direxion.com/products/direxion-daily-gold-miners-bull-3x-etf">triple the daily inverse returns</a> of the NYSE Arca Gold Miners Index. Even amid a rough stretch for gold and the miners, DUST was scuffling this month. Until Wednesday when DUST surged 31.79% on more than double the average daily volume.
A similar situation is scene with DUST&#39;s small-cap counterpart &ndash; the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jdst#NYSE">JDST</a>) &ndash; is lower by more than 60% over the past week and that&#39;s with the benefit of a Wednesday gain of almost 22%.
<h3>The Bull Case</h3>
Timing reentry into the Direxion Daily Gold Miners Index Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>), the bullish equivalent of the aforementioned DUST, is historically tricky and that task is even more so following NUGT&#39;s Wednesday slide of 49.34%, but some market observers believe there are still tailwinds for the miners.
&ldquo;The fiscal and monetary measures currently being taken rival those seen during the housing crisis of 2008/2009, a time when owning gold and miners was extremely lucrative,&rdquo;<a href="https://www.schaeffersresearch.com/content/analysis/2020/03/18/a-silver-lining-for-this-gold-etf">according to Schaeffer&#39;s Investment Research</a>. &ldquo;Higher government spending and stimulus generally equates to higher prices in metals, and conversely a lower U.S. Dollar. Should this trend continue, further quantitative easing and government stimulus should push prices in these sectors even higher.&rdquo;
Assuming those good vibes for miners materialize, ambitious traders could look to the Direxion Daily Junior Gold Miners Index Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnug#NYSE">JNUG</a>), which is coming off a Wednesday loss of almost 61%, which pushed its March decline to over 90%.

Gold ETFs Betray Safe-Haven Reputation In March Market Meltdown

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
The first trading day of March was a pretty remarkable day in the ETF world.
That&rsquo;s because as major indexes climbed anywhere from 3-5.5% after a week of heavy selling, several highly traded leveraged ETFs broke new records in either capital inflows or outflows. Two of those ETFs are of particular note for hitting new all-time cash flow records.
Though it&rsquo;s impossible to determine whether inflows and outflows are the result of longs buying or shorts selling (or vice versa) they can be a useful tool in determining if a sudden change in sentiment is underway. What follows is a look at the circumstances that lead to the high dollar volume in each ETF as well as what the buying or selling might signal for the market now as traders grapple with the uncertainty that the coronavirus has brought upon global markets.
<h3>DUST</h3>
With an average daily volume of about 15.3 million shares, the Direxion Daily Gold Miners Index Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>) experienced record outflow on March 2, as stocks bounced off their lows and gold languished in a brief rut. All told, DUST saw a net outflow of -$114.1 million that day, roughly -$3.7 million more redemptions than the prior outflow record set in 2016 according to fund flow data from ETF.com.
The March redemptions followed a 2% decline in the price of gold after the commodity had rallied for the better part of the past year. However, the underlying NYSE Arca Gold Miners Index (GDMNTR) had recently risen more than 4%, likely a painful shock for the many short sellers <a href="https://www.etf.com/sections/features-and-news/most-shorted-etfs" style="text-decoration:none;">that historically trade DUST</a>.
What&rsquo;s more, in the trading days immediately before and after the record outflow, the ETF posted two of its highest volume days on record. Nearly 51.6 million shares were traded during the Feb 28 session while roughly 51.1 million shares changed hands on the following Tuesday.
Since then, gold has rebounded close to its previous high and DUST has retreated back around year lows. Nevertheless, trading volume in the bearish gold fund has remained robust, topping its average trading volume every day since February 18.
Oddly, the same cannot be said for DUST&rsquo;s bullish counterpart, the Direxion Daily Gold Miners Index Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>), which has seen elevated trading volume in that same span but not quite to the same degree as DUST. The comparatively low interest could be a sign that traders feel gold has hit a ceiling at its current 7-year high
<h3>SPXL</h3>
One of the most heavily traded broad-based leveraged ETFs, the Direxion Daily S&amp;P 500 Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spxl#NYSE">SPXL</a>), saw its highest daily inflow ever. And the truly remarkable thing is the previous high wasn&rsquo;t even close.
On Tuesday, March 3, SPXL saw $215.66 million in net inflows, again according to fund flow data from ETF.com. The next highest net inflow, way back in early-February 2018, saw the ETF garner $157.95 million.
And while not quite as heavily traded as the gold ETFs above, SPXL has seen its highest volume days in more than four years, most of it selling volume. This peaked on the final day of February with more than 20 million shares traded, more than four times its average volume.
Of course, SPXL&rsquo;s bearish twin, the Direxion Daily S&amp;P 500 Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spxs#NYSE">SPXS</a>) also received a fair amount of traction in this period. While SPXS&rsquo;s fund flow didn&rsquo;t register any records in terms of net deposits or redemptions, it did post two consecutive 53+ million share volume days on the final days of February, again, more than four times its average.
<h3>Uncertainty Going Forward</h3>
It&rsquo;s difficult to draw definitive conclusions from this activity since the circumstances surrounding it are so extraordinary. However, the fact that traders are positioning themselves so heavily toward &ldquo;normalization&rdquo; or a return to the status quo&mdash;that stocks will continue to outperform and gold will retreat as fear leaves the market&mdash;does reveal that there is still faith in the decade-long bull market.
Whether or not that is the case is yet to be seen. At the very least, there are a lot of traders willing to trade that way.
<hr />
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The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Broad U.S. Equity ETFs

SPXL

SPXS

Market Volatility Has Led To Several Leveraged ETFs Setting New Records For Inflows And Outflows

Direxion Daily Gold Miners Index Bear -2X Shares

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