Lose Money Fast on Miner 3X ETFs (DUST, JDST, NUGT, JNUG)


Who the F can afford these equities besides hedge funds?

Not the average investor hoping to catch a swing in the right direction. The miner and anti-miner ETFs and trade at 3X bullish or bearish are the following: Direxion Daily Gold Miners Bear 3x Shares ETF (DUST) and Direxion Daily Junior Gold Miners Index Bear 3X Shares ETF (JDST), Direxion Shares Exchange Traded Fund Trust (NUGT), Direxion Shares Exchange Traded Fund Trust (JNUG). The only clear winner is the company that is running these ETFs -- Direxion.

I started watching these ETFs these past few weeks after losing and gaining some money with actual miner stocks. Finally got the sense to check out the miner ETFs and low and behold found these crazy 3X ETFs that gap 15 to 20% in either direction on a daily basis.  What is the point of offering these types of investing "opportunities" to the daily trader if you don't have thousands, make that millions to burn?

Last week i noticed several 20,000 buys and sells coming through on the order book for these ETFs. Who the F can afford that?  Who are the big money buyers and sellers?  

I last talked about these ETFs in Betting Against the Miners has Banked Massive Coin

That's the thing, nobody covers these equities. Nobody. ETF Trends is about it. That's because nobody gives a crap about the miners. Until we see a clear indication they have bottomed stay away. Is Russia out to flatline them all then buy them up?  We have nothing to go with but speculation that China and Russia are out to get the miners on the cheap. I'm with ZeroHedge on the miners, they are getting played for the benefit of China and Russia.  That equates to a deady investment option for traders hoping to make up their 2014 profits. Looking to these ETFs for a Hail Mary pass is literally...


These ETFs scream "Danger Will Robinson" and then some. 

Mastery Bottom Line:
Stay away from these 3X take your money ETFs by Direxion. Unless you have a clear indication of where the miner stocks are going to be don't touch these. If you think you can predict the daily swing of the miners then pony on up. But please don't bet the farm. A 3% allocation of your assets is the maximum I would ever think about.