On Monday, traders pulled $33.2 million from the Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) while adding almost $13 million to the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST), according to Direxion data. NUGT and DUST are the triple-leveraged answers to GDX.
Those flows into DUST and out of NUGT could be instructive given investors’ long-standing history of getting it wrong with leveraged miners ETFs, meaning GDX could be poised to deliver more near-term gain. For example, from about Aug. 20, 2014 to Sept. 23, DUST lost $185.3 million in assets but surged 55% over that period. [Getting it Wrong With Leveraged ETFs]
Market Vectors Gold Miners ETF
Chart Courtesy: Market Oracle
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.