Making matters worse, another scenario is repeating itself: Traders continue to be burned by trying to catch bottoms in NUGT and JNUG. On Thursday, only the Direxion Daily S&P 500 Bull 3X Shares (NYSEArca: SPXL) added more new assets than the $81 million that flowed into NUGT among Direxion’s leveraged ETFs.
In further proof that traders are dangerously insistent on buying long gold miners, only the Direxion Daily Small Cap Bull 3X Shares (NYSEArca: TNA) lost more money yesterday than the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST) and the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JDST).
DUST is up 50% this week while JDST is flirting with a weekly gain of 69%. Yet, over the past 30 days, there has been creation activity in JNUG and NUGT while there traders have redeemed shares of DUST and JDST, according to Direxion data.
Direxion Daily Junior Gold Miners Index Bull 3x Shares
Tom Lydon’s clients own shares of GLD.