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Junior gold stocks fall from highs

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Junior gold stocks led the TSX Venture lower Monday. No bearish gold ETF performed better than Direxion Daily Junior Gold Miners Bear 3X ETF (JDST) in May’s Stock Challenge as it soared 21.43% higher Monday. The 21% jump is nothing extreme for the ETF, which averages close to a double digit move every day. More than 14.4 million shares exchanged hands Monday, as liquidity continues to increase in gold ETFs, both bullish and bearish.

 

Leveraged and bearish gold ETF: Direxion Daily Junior Gold Miners Bear 3X ETF

 

The Direxion Daily Jr Gld Mnrs Bear 3X ETF‘s move Monday was enough to capture the Daily Stock Challenge Breakout award on this day in May.

These types of ETFs are leveraged and designed for very short term trading opportunities. These types of ETFs are a traders paradise and nothing more.

Direxion explains on its website that:

“These leveraged ETFs seek a return that is +300% or -300% of the return of their benchmark index for a single day. The funds should not be expected to provide three times or negative three times the return of the benchmark’s cumulative return for periods greater than a day.”

 

Check out the ETF’s 1-year chart:

jdst

 

The U.S. Dollar has been rising which is also putting pressure on commodities.

 

U.S. Dollar – 3 Month Chart

usd-3month-_0

The TSX Venture had one of its worst days in weeks, falling 11.52 points or 1.72% Monday.

beata3550 jumps into lead of May Stock Challenge

 

Long-time Pinnacle member and past Stock Challenge Champ ‘beata3550‘ selected JDST for May’s Stock Challenge and enjoyed a single day bump of 19.41%. His combined average return on the month is now 22.76%.

Member ‘stellar8‘ who selected two Venture-listed stocks is nipping at his heels with a 22.22% return.

 

Our ultimate guide to investing in gold stocks is a must-read resource to learn from data over the last several years and our tips and insights into reading potential investment opportunities in future.

 

Our ultimate guide to investing in gold stocks is a must-read resource to learn from data over the last several years and our tips and insights into reading potential investment opportunities in future.

 

 

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