It would appear that the near-term path of least resistance for miners stocks and ETFs is down and there is anecdotal evidence to support that claim. As we have previously unearthed, investors have a tendency to embrace bullish leveraged miners, such as the Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) and the Direxion Daily Junior Gold Miners Index Bull 3x Share (NYSEArca: JNUG), at the wrong times. [Getting it Wrong With Leveraged Gold ETFs]
Making that scenario all the worse is that embracing JNUG and NUGT means eschewing the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST) and the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JDST).
Over the 30-day period ending Oct. 2, NUGT and JNUG had seen positive creation activity to the tune of a combined $23.2 million while investors yanked a combined $9.4 million from DUST and JDST, according to Direxion data.
XAU & GDX Charts
Chart Courtesy: Kimble Charting Solutions
Tom Lydon’s clients own shares of GLD.