NUGT: 2x Perspectives On Gold
NUGT offers 2x daily exposure to gold miners, making it suitable only for short-term, actively monitored trades due to compounding effects. A weakening US dollar and supportive Trump administration policies are expected to benefit gold prices and, by extension, the Fund's performance. Elevated equity market volatility should drive capital into gold, further supporting gold miners and leveraged ETFs like NUGT in the near term.
NUGT: There Is An Investment Case In Leveraged Gold Mining
Direxion Daily Gold Miners Index Bull 2X Shares has had an annual return of -22% and 97% volatility since its 2015 inception. Despite the terrible track record, outside day trading, NUGT may still have a very specific application in a diversified portfolio. NUGT is not for everyone; allocate to this fund in very small doses, if at all.
An Update On NUGT: The Leveraged Senior Gold Mining ETF
I recommend a dynamic approach to Direxion Daily Gold Miners Index Bull 2X Shares ETF, using price and time stops to manage risks and reestablishing positions at higher or lower prices. Gold futures and the NUGT ETF have significantly risen since November 2023, with NUGT outperforming gold in short-term rallies but requiring careful risk management. NUGT magnifies GDX's performance, offering higher gains during gold rallies but greater losses when gold declines, making it a highly volatile trading tool.
NUGT: Expect Gold Rally To Continue After The Fed Cut
NUGT is a leveraged ETF that aims to provide investors with a 2x return on gold miner stocks, but its leverage on gold price is much higher. The outlook for the gold price is bright, driven by rate cuts and fund rotation, as well as weaker outlook for other commodities. The ETF is highly volatile and not suitable for long-term investments due to its daily rebalancing and compounding effects.
NUGT & DUST: Prospecting Precious Metal Miners
Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods.
NUGT: CPI Could Matter More Over The Next Couple Of Weeks
The jobs data was hotter than expected, which accentuated the higher for longer situation that the US finds itself in. For gold, which offers no direct cash yield and costs to keep custody of, this is bearish. Miners are correlated to gold, and we think that while mostly already assumed, a belligerent inflation figure may cause some more downside action.
