Our little Nugat theme is all done now because I no longer like the taste of being leveraged short the miners. I am taking +15% on the trade and moving on now.
This chart is bogus because these leveraged ETFs degrade more than the underlying asset they are leveraging. That is probably why NUGT is at the support defined as the October high and yet GDX is nowhere near its comparable support. That’s actually why I shorted the leveraged ETF instead of buying the likes of DUST; just in the event I had decided to hold the short position longer-term.
Anyone managing sector technicals using a leveraged ETF is doing the wrong thing. You should chart the underlying and then use the leveraged ETFs as you will… white knuckles and all. 🙂
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