Junior Miners: Profitability or Bust

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Last week the Anti-Miner ETFs won.

In the ongoing saga of bullish vs. bearish miner and Jr. miner plays the clear winner was the anti-miner ETFs.  That would be the Direxion Daily Gold Miners Bear 3x Shares ETF (DUST) and Direxion Daily Junior Gold Miners Index Bear 3X Shares ETF (JDST) killing the miners in huge gains.

On Friday the JDST ended up 36%, yes that's a single day's trade. The JDST started the day at $17.32, got as high as $20.40 and closed at $20.32.  The DUST also did well ending the day up 27% to $30.16.  The true benefactor are not the new traders or robots playing these ETFs but Direxion itself.  They are laughing all the way to the bank on these ETFs.

Founded in 1997, Direxion has 4 offices in the U.S. and Hong Kong. According to their timeline they entered the ETF game in 2012. I would bet that 2014 was their most profitable year yet and a big thanks to the pro-miner and anti-miner ETFs.  They also bank coin from the bullish miner ETFs: irexion Shares Exchange Traded Fund Trust (NUGT), and Direxion Shares Exchange Traded Fund Trust (JNUG)

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There really isn't much hope for the miners right now as we pointed out in Finally a credible story on Junior Miners (DUST, JDST, NUGT, JNUG)

 

Mastery Bottom Line - Big Trouble in Little China - LightningMastery Bottom line:

Who will be left standing after we finally get a bottom in gold prices? Who knows. But what will continue to occur is the volatility with the gold and silver miners.  Until stability sets in expect the DUST, JDST, NUGT, and JNUG to swing wildly.