Investors are displaying a preference for leveraged fare as a means of participating in the miners rally. Since the start of December, JNUG and NUGT have added $200.6 million and $67 million, respectively, while a combined $559.3 million has been pulled from GDX and GDXJ.
Adding to the long gold miners thesis are some bullish technical signs, including GDX’s relative momentum perking up even as the ETF recently made new lows, notes Chris Kimble of Kimble Charting Solutions. That could be a sign of bullish divergence that could give way to positive price action.
Coming into Wednesday, JNUG and NUGT were the two-best performing leveraged bullish Direxion ETFs this month, but only three of the issuer’s leveraged funds have been more volatile than JNUG over the past month.
Direxion Daily Gold Miners Bull 3X Shares