One of the hottest and most volatile ETF’s in the market today is the Direxion Daily Junior Gold Miners Index Bull 3x Shares (JNUG). Since the middle of March 2017 we have seen this index go into a downward spiral losing almost 50% of its value. Looking ahead and seeing the history of GDXJ the ETF that JNUG is based on, the seasonal lows are approaching and looks to reaching a bottom.
Analyzing gold prices, considering inflationary pressures and world instability, gold will recover to $1300/oz in the coming months pushing junior gold miner earnings up.
Seeing the volatility and following a trading strategy of scalping 1% a day over the coming months is not out of the question. Watch for JNUG to push back to $55 by end of July.
As of May 3rd gold prices are currently hovering $1250/oz and JNUG $16.43