• "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"

The Lunatic Fringe - Trading talk.

Zed

Barely Bullish!
Midas Member
Site Supporter ++
Joined
Mar 30, 2010
Messages
16,875
Likes
16,409
Location
Hiding under the keyboard!
I read the prospectus. No guarantee of any gold held and no recourse to sue them.
Yeah, I dunno. Trading vehicle is my view of it and I think most people see it as that. Not what you do for a long term investment. Great to short, buy/sell options over, or just trade if you can't get physical @ the price or whatever the issue. At least with GLD you can move fast, capture the move then convert to physical later.
 

Zed

Barely Bullish!
Midas Member
Site Supporter ++
Joined
Mar 30, 2010
Messages
16,875
Likes
16,409
Location
Hiding under the keyboard!

Strawboss

Apocaloptimist
Site Mgr
Midas Member
Site Supporter ++
Joined
Mar 31, 2010
Messages
7,693
Likes
14,463
For those of you trading the 3x levered trashcans such as NUGT and DUST...just dont.

Here is why they are trash...

If the underlying (GDXJ) goes up 10% - they are supposed to go up 30%...and if it goes down 10% - they go down 30%. Simple so far - right?

So - lets say GDXJ goes from 20-22...a 10% move...and NUGT goes from 20 - 26...a 30% move.

Now - GDXJ then loses 10% and goes from 22 down to 19.80. NUGT would lose 30% and go from 26 down to 18.20.

So - GDXJ basically went from 20 - up to 22 and back down to slighly lower than 20 but NUGT went from 20 up to 26 and then down to almost 18...

When prices are choppy...up and down...the 3x levered ETFs get clobbered. The only time they are any good is during a trending move where price is consistently going in the same direction.

If you are gonna play with 3x ETFs - I would strongly suggest that you consider options instead....
 

louky

Silver Member
Silver Miner
Joined
Jun 8, 2014
Messages
9,550
Likes
6,366
Location
Bluegrass
For those of you trading the 3x levered trashcans such as NUGT and DUST...just dont.

Here is why they are trash...

If the underlying (GDXJ) goes up 10% - they are supposed to go up 30%...and if it goes down 10% - they go down 30%. Simple so far - right?

So - lets say GDXJ goes from 20-22...a 10% move...and NUGT goes from 20 - 26...a 30% move.

Now - GDXJ then loses 10% and goes from 22 down to 19.80. NUGT would lose 30% and go from 26 down to 18.20.

So - GDXJ basically went from 20 - up to 22 and back down to slighly lower than 20 but NUGT went from 20 up to 26 and then down to almost 18...

When prices are choppy...up and down...the 3x levered ETFs get clobbered. The only time they are any good is during a trending move where price is consistently going in the same direction.

If you are gonna play with 3x ETFs - I would strongly suggest that you consider options instead....
https://finance.yahoo.com/news/direxion-changes-objectives-ten-leveraged-204600012.html
 

louky

Silver Member
Silver Miner
Joined
Jun 8, 2014
Messages
9,550
Likes
6,366
Location
Bluegrass
Trump has done basically nothing except boast about a mole hill on a mountain to tweeter for 3.5 years straight and it's gone in a matter of days lol

20200323_073710.jpg
 

louky

Silver Member
Silver Miner
Joined
Jun 8, 2014
Messages
9,550
Likes
6,366
Location
Bluegrass
1539 bottom of the box, watch for back test of support....dont fall for the 1521 hype all over tweeter and blogs like every time we're in this zone
 

dpong

Gold Member
Gold Chaser
Joined
Jan 11, 2012
Messages
2,153
Likes
1,922

BackwardsEngineeer

Total curmudgeon
Gold Chaser
Sr Site Supporter
Joined
Aug 1, 2011
Messages
614
Likes
983
For those of you trading the 3x levered trashcans such as NUGT and DUST...just dont.

Here is why they are trash...

If the underlying (GDXJ) goes up 10% - they are supposed to go up 30%...and if it goes down 10% - they go down 30%. Simple so far - right?

So - lets say GDXJ goes from 20-22...a 10% move...and NUGT goes from 20 - 26...a 30% move.

Now - GDXJ then loses 10% and goes from 22 down to 19.80. NUGT would lose 30% and go from 26 down to 18.20.

So - GDXJ basically went from 20 - up to 22 and back down to slighly lower than 20 but NUGT went from 20 up to 26 and then down to almost 18...

When prices are choppy...up and down...the 3x levered ETFs get clobbered. The only time they are any good is during a trending move where price is consistently going in the same direction.

If you are gonna play with 3x ETFs - I would strongly suggest that you consider options instead....

Straw you are like a EF Huton now I'm going to have to listen....

Direxion Changes Objectives Of Ten Leveraged Funds To Address Extreme Market Conditions, While Also Closing Eight Funds Due to Limited Interest Since Launch
https://finance.yahoo.com/news/direxion-changes-objectives-ten-leveraged-204600012.html
 

dpong

Gold Member
Gold Chaser
Joined
Jan 11, 2012
Messages
2,153
Likes
1,922

louky

Silver Member
Silver Miner
Joined
Jun 8, 2014
Messages
9,550
Likes
6,366
Location
Bluegrass
Fed trying to copy benny in 2009 times 10. 2160 was first target. Could see big bounce around here. 279 bottom of the box.
 

Cigarlover

Midas Member
Midas Member
Midas Supporter
Joined
Dec 18, 2011
Messages
7,720
Likes
15,106
Whats an open ended asset purchase? What assets? RE, Stocks? Bonds?
 

dpong

Gold Member
Gold Chaser
Joined
Jan 11, 2012
Messages
2,153
Likes
1,922

dpong

Gold Member
Gold Chaser
Joined
Jan 11, 2012
Messages
2,153
Likes
1,922
There is a change in The Force. (Wall Street Journal)

https://www.wsj.com/articles/as-economic-toll-mounts-nation-ponders-the-trade-offs-11584970165

"Former Goldman Sachs chief executive Lloyd Blankfein made similar comments on Twitter. “Extreme measures to flatten the virus ‘curve’ is sensible-for a time-to stretch out the strain on health infrastructure. But crushing the economy, jobs and morale is also a health issue-and beyond,” he said."

Even among scientists who study pandemics, some are starting to wonder about the cost of fighting the disease. Michael Osterholm, a University of Minnesota disease specialist, stunned some in the science community when he suggested letting people at low risk of serious disease continue working to keep the economy going.

“This is not like a Minneapolis blizzard that blows through,” he told The Wall Street Journal. “It’s like a Minneapolis winter that lasts for months.”
 

Strawboss

Apocaloptimist
Site Mgr
Midas Member
Site Supporter ++
Joined
Mar 31, 2010
Messages
7,693
Likes
14,463
So now the market is concerned that with the Fed monetizing everything that the stimulus bill wont pass?

Is it gonna take another leg down in the market to get the politicians together?

Or - is Pelosi taking her sweet ol time knowing that the longer she dithers - the more damage is done to the economy and Trumps re-election chances?
 

Voodoo

Gold Member
Gold Chaser
Site Supporter
Joined
Mar 31, 2010
Messages
1,025
Likes
1,219
Location
Deep Underground Bunker
Is the FED ever going to notice that everytime they "do something" the market tanks? Hmm.