How is President Trump doing? With a one being worst and a ten the best.
Total Voters: 36
Loading ...Great points especially on the rebalancing….had not heard that…Seems the problem they have is sticking a triple leverage etf JNUG on such a small sector, value wise, while having to stay below 20 %.
Also the existing volatility is more than enough in the juniors…going triple is insane.
Can’t leave that info out to you guys with change in portfolio and sell off. Too bad I don’t know what they’re gonna buy lol I suppose you could short it before June although risky and wonder if it will buy the same shares as GDX so go long ” temp” for the gains if it even reflects but not betting on it. It’s also or Maddog that their doing fails to deliver but don’t know if it’s a suspicion comment. That even if they did buy what GDX has Id it would affect the pog. Im just guarded because last move the miners about reached their old highs which caused a expected reaction getting to big to fast but my concern that the metal Gold WASNT reaching its old highs with it which was to me a red flag to me. I don’t wait for gold to go up to say a target someone dreamed up but just see the trend. Like catching a wave lol I don’t short maybe I should so with is volatility you can make money both way because in effect I do wait till the next move. Now gonna watch to see if the reverse is happening, tto last run up, Phyz goes up like now but what about the shares. This sector is so messed up, in so many ways.
check the bottom of that Golden Egg and see if its doesn’t say, ” For Farmboy”. 🙂
Good Morning to All, and Many Thanks for the comments on Jnug and GDXJ over the weekend. Increased my understanding of what happened last Thursday and provided much needed insight into the paper game(s) involved.
Great bunch of guys and gals we have around here !
Let me grab another coffee and will get my trading face on and ready to start a new week. Best and Good Luck to everyone, Farmboy
Thanks for the GDXJ, JNUG rundown. It helps to make sense of the constant underperformance.
Pretty scary stuff if you’re holding miners.
USD getting hit this am but no help. Looks like the scum will hold the line just below $1290, to keep a breakout from happening.
On top of that, GDXJ will be making a massive and sure-to-be-messy portfolio reallocation in June. According to BMO Capital Markets’ research, GDXJ will add roughly 18 new component names in June. BMO suggests that GDXJ will sell more than half of its current holdings – roughly $3 billion worth – in order to fund the new positions.
This is a tragedy for ETF holders. For one, you are hit with significant tax consequences of an ETF engaging in such a high rate of portfolio turnover. Additionally, arbitrage traders are able to take advantage of forced shifts in ETF positioning by buying the new additions and shorting the deletions. With GDXJ having such huge positions, it makes it an easy target for algo-trading shops.
For investors interested in gold juniors, unless you have a very small amount of capital, it’s probably better for most people to buy four or five good junior miners within the industry rather than buying this increasingly defective ETF. If you ditch the ETF, the 0.52% expense ratio that you save gives you $52/year to cover trading costs on an investment of $10,000; that should be plenty for maintaining a small gold mining juniors basket of your own.
https://seekingalpha.com/article/4062650-big-gold-mining-juniors-etf-shows-cracks-indexing-model
To offer some insights…
JNUG/JDST are 3x derrivatives of GDXJ. NUGT/DUST are 3x derrivatives of GDX. At ‘this’ level these leveraged ETF’s don’t mix so that specuulators can pick their poison.
JNUG is heavily day traded and represents 53% of GDXJ’s inflows/outflows. So much so that GDXJ is having serious trouble keeping up with the volume. i.e ‘they’ have to actually purchase & sell those shares every day while JNUG just buys options/futures on the single ETF it leverages. To bring more liquidity to their ETF, GDXJ now holds their own large cap ETF (GDX) as a top holding.
JNUG, JDST, NUGT & DUST are SERIOUSLY distorting and damaging the entire Gold & Silver mining sector in ways that didn’t exist back in the 2011 Gold bull market. Because of these 3x leveraged ETF’s, top holdings of GDXJ get slammed around daily by day traders, while the miners not held by or at the bottom end, languish in obscurity (even if they’re execellent picks). Regular rotation of these holdings also makes for unpredictible returns. For example, GDXJ might pickup a miner you own while Gold is in a down-trend and shit all over it. Then drop your miner once Gold turns around. Or vice versa if you’re lucky.
Whether you like it or not, virtually the entire PM mining sector is now the bitch of these 4 ETF’s. So if you hold any individual miner, make it your business to know the stake GDXJ or GDX has in it; and at what point in Gold or Silver cycle they hold it. Real investing is neither simple nor straight forward…and a lot of risk-on, bull market chasing, lemming investors are going to find that out the hard way.
FYI beware of UGLD, DGLD, USLV & DSLV as well. Their movements tend to underperform their decay so are only useful for large short-term moves in Gold & Silver.
Reading between the lines of the statement, seems to me that it is 20 % rule that is the problem and that is not going away…plus mathmatically the only way u can get 3 times gearing, is to buy 3 times the amount of the underlying shares, unless u have an agreement, that dealers will sell u a 3 times paper derivative exposure and they then delta hedge…ie hardly ever buy the full 3 times amount.
I have yet to see what Directions book looks like behind JNUG….could be v interesting to see just wht it has…certainly buying it’s own fund GDX seems v naughty, especially as I showed last week, it is trading at a premium to most of it’s underlying shares…even when there is a constant massive seller.
Hopefully this is the beginning of the end of PM ETF’s….the scum are certainly playing games with them and their demise will not help the scum one iota.
One other thing is for sure, huge amounts of money have gone into the shares, via ETF’s and surprise, surprise it hasn’t gone into the actual shares, which it should have done, if Fall st was even vaguely honest…or the SEC not glued top the latest Debbie Does, we’d be way north of 220 in the HUI by now.
Tea for the ladies…
Easter egg coffee…
Should I be disappointed? The Easter Bunny only left me one egg! And it wasn’t very well hidden, either.
Steaming up Donner Pass with a double-header. This is how you climb mountains!
http://www.railpictures.net/photo/613382
June Gold ended the week consolidating for a likely push to a minor rally target at 1303.00. An equally compelling pattern of somewhat larger degree targets 1305.70, so you should be prepared for stall at one number or the other. As always, if a Hidden Pivot as clear as either of these two gives way easily, that would imply there’s unspent buying power to reach still higher levels. Keep in mind as well that the 1464.90 target of a far larger pattern dating back to November 2015 will continue to color our trading bias a bullish shade of green. It is tied to a 1297.50 major midpoint resistance that could also be an obstacle to any rally in the week ahead. Once the futures have pushed decisively above this number, however, it will eventually become useful for purposes of setting up a bullish, long-term ‘mechanical’ trade with entry risk very tightly controlled.
why are there NEVER any circumstances that force a gold vehicle like JNUG UP??
No thanks to me. Floridagold, Ipso, Wanka and Weston got er’ done.
Thanks gents.
The revelation came amid reports that a New York City set with a history of friendly ties to the Democratic party is gaining traction in President Donald Trump’s White House, much to the chagrin of conservative commentators.
Members of the Kushner family itself donated large sums to Democratic causes until a few years ago, and Jared has reportedly been accused of being “a Democrat” by more nationalist and populist factions within the White House. Another oft-cited member of this NYC-clique is the Director of Trump’s National Economic Council, registered Democrat and former Goldman Sachs executive Gary Cohn.
Yes. Down on my end as well.
The conspiracy bells were going off in my head after the weird action late in the trading day on Thursday and my inability to log in much of yesterday . Thought maybe the big boys had shut us down .
up to Macroman/Silverngold territory in British Columbia to have the greatest choices of alluvial areas designated by mineral resources officials as Recreational Panning Reserves. Maybe it’s just easier and more cost effective to lay out some dollars to buy some gold while it is still at bargain fiat prices rather than going out to pan for it in any of the 14 so-called recreational panning areas in British Columbia.
Floridagold – Disagree. Somebody knows exactly what it will do. There are no accidents in the PM markets.
If you disagree, please explain.
If Trump succeeds in backing Kim down, the world just started spinning on a whole new axis. Not only will Trump have earned the street cred to bring China and Russia to the negotiating table with a level of respect and authority the U.S. hasn’t had in years but he will also have the leverage to take control of the Neocons AND their agenda and start using THEM for his agenda rather than they using him for theirs. We shall see.
Maybe Trump IS crazy…..but crazy like a fox.
Ohhhh…….this is epic.
The Pillsbury Doughboy meets Dirty Harry, while the entire world takes cover and trembles.
So Kim Jon Un….feeling lucky punk??
It’s 8pm Korea time. Wasn’t he supposed to be detonating a hidden nuclear device?? Wasn’t he going to bring the U.S. to its knees by defying it with another nuke test?? Well, tick tock Kim…..all eyes are on you, including the eyes of the military, the ranks of which you have been so busy purging these past five years. I’m not so sure they are going to view you in quite the same way if you end up being all puff and no stuff. If you don’t pull the trigger for the glory of North Korea and its Supreme leader founding Father…..and your Grandfather……well they just might pull the trigger on you.
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Exactly. Trump is a narcissist like Kimmie Boy, but he’s a bigger one, and he’s got more insurance; so, he’s got Kimmie Boy trembling in his own gel. He’s done what should have been done years ago before the situation got this dangerous — what should have been done when we were certain Kim Jong-phat didn’t have any more nuclear weapons up his arsenal than the one he just test farted. Instead, we talked and dithered until the situation became a dire risk for the entire world to where half the people here on ZH are saying we should never take such a crazy risk as to depose this little nut-wad with a death wish who kills his own family members by strapping them to cannons and inflating them with buckshot — people dumb enough because of their own blind America hate to call the glowing marshmallow god “perfectly rational.”
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For now it is unclear if the JNUG suspended due to an investor stampede into the ETF in the last few days of the week as gold broke out, or there is simply a liquidity constraint. Both may be relevant
Oro 15:40; It looks like this big speculator wants to hedge itself against something big…
I see Warren’s wrinkly fingerprints all over this and Becky’s butt.
how come JNUG went down Thursday–everything -at all times–is bearish for gold–but we are always told that “later” it will be bullish…on down the line…
could someone explain-in simple terms–what this article is about? TIA
