Issue #229
Gold continues to look weak and gold mining shares have been selling off in the wake of gold’s weakness. But short term, mining shares are deeply oversold.
Moreover, consider this chart of the Junior Gold Miners 3X ETF (JNUG).
Shares of JNUG are now trading at the low end of their trading range since March and appear to be making a double bottom.
That double bottom won’t last, but in the short term it could provide a decent bounce, back up to the top of the range at the $24 level.
With a stop at $12.75, a buy here would yield a reward-to-risk ratio of roughly $9 of upside potential compared to $2.42 of risk. That’s $3.71 to $1. Worth trading.
Therefore, I recommend you buy 200 shares of Direxion Daily Junior Gold Miners Bull 3X ETF (JNUG). Here are the details:
|
NEW TRADE: For all members, for each $25,000 in equity you are trading: Buy 200 shares of Direxion Daily Junior Gold Miners Bull 3X ETF, symbol JNUG, at the market, and place a protective sell stop at $12.75, good till cancelled. |
Hold all other positions, with their related stops.
Best wishes and stay tuned!
Larry
