Earlier this year, GDX and GDXJ were two of several miners funds that ranked among the best non-leveraged ETFs to start the year. At one, five of the top 10 non-leveraged ETFs on a year-to-date basis were gold miners funds. Today, that number is zero as GDX and GDXJ have given up all their 2015 gains and are negative on the year.
The recent action in DUST, JDST, JNUG and NUGT is a reprisal of a familiar theme. Traders pour money into the members of that quartet that are heavily beaten up on a particular day while pulling money from the ones that surged the same day in hopes of catching a big reversal the following day. As Monday’s action in the triple-leveraged gold miners ETFs proves, that is a dangerous game to play. [Interesting Action in Leveraged Miners ETFs Flows]
Month-to-date, DUST and JDST are Direxion’s top two leveraged bearish ETFs while JNUG and NUGT are the issuers two worst-performing leveraged bullish funds.
Direxion Daily Gold Miners Bear 3X Shares
Tom Lydon’s clients own shares of GLD.