A couple of charts of NUGT vs. Leading gold stocks from 1 )
2/29/2012 2) from may lows 5/16/2012 to present
The basket of relative strength leaders is now mostly well above
the 2/29/2012 area where gold got hit, while the GDX (NUGT)
lags. In fact, NUGT is underforming the basket in that
range as much as 60%.
However, off the lows, not surprisingly, the 3x leverage of
NUGT, warts and all of the GDX considered, is vastly outperforming
the basket by some 40% and giving somewhat more diversification and
lower trading costs and time input.
Not earthshattering insight, but it's a good look at when to be
in leverage , whether leveraged ETFs or smaller cap discovery and
development plays vs. larger cap relative strength issues.
(wowten - I think if you refresh the new window it'll
come up ...it's a bit bigger file and I think I had the same thing
happen)
The more I look at this , the more I like it - just the next
little run in GDX to 58 is going to give about 45- 50% in
NUGT. I issue a challenge if anyone wants to come up
with a GDX, GDXJ, or handful (5) of CDNX / TSX microcaps that can
outperform NUGT by the time GDX gets back to 58 flat.
NUGT Is the Preferred PM Vehicle In An Uptrend
Posted by cmunny on 12th of Sep 2012 at 12:56 pm
A couple of charts of NUGT vs. Leading gold stocks from 1 ) 2/29/2012 2) from may lows 5/16/2012 to present
The basket of relative strength leaders is now mostly well above the 2/29/2012 area where gold got hit, while the GDX (NUGT) lags. In fact, NUGT is underforming the basket in that range as much as 60%.
However, off the lows, not surprisingly, the 3x leverage of NUGT, warts and all of the GDX considered, is vastly outperforming the basket by some 40% and giving somewhat more diversification and lower trading costs and time input.
Not earthshattering insight, but it's a good look at when to be in leverage , whether leveraged ETFs or smaller cap discovery and development plays vs. larger cap relative strength issues.
http://screencast.com/t/Pg7cDcoVDqG
http://screencast.com/t/RfhuamupU
(wowten - I think if you refresh the new window it'll come up ...it's a bit bigger file and I think I had the same thing happen)
The more I look at this , the more I like it - just the next little run in GDX to 58 is going to give about 45- 50% in NUGT. I issue a challenge if anyone wants to come up with a GDX, GDXJ, or handful (5) of CDNX / TSX microcaps that can outperform NUGT by the time GDX gets back to 58 flat.
2nd link doesn't seem to
Posted by wowten on 12th of Sep 2012 at 01:25 pm
2nd link doesn't seem to be working
NUGT
Posted by billnew52 on 12th of Sep 2012 at 01:15 pm
and GTFO of the way in a down trend!
Posted by zach06 on 12th of Sep 2012 at 01:16 pm
where there is smoke there is fire