Some traders are already betting on a junior miners rebound and doing so in aggressive fashion. Over the past 30 days, the Direxion Daily Junior Gold Miners Index Bull 3X Shares (NYSEArca: JNUG) has seen creation activity while traders have redeemed shares of the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JDST), according to Direxion data.
However, on a month-to-date basis, only the Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) has been a worse performer among Direxion’s triple-leveraged bullish ETFs than JNUG. NUGT and JNUG entered Wednesday with an average February loss of 23%.
Market Vectors Junior Gold Miners ETF
Chart Courtesy: Kimble Charting Solutions
Tom Lydon’s clients own shares ofGLD.