Direxion Daily Junior Gold Miners Index Bull 2X SharesArca
Description
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So if you look at the History of JNUG it is fairly constant at 18-30 dollar range if you equate for the splittings. So at these 3 dollar ranges I think JNUG would be a great buy but... in these markets its hard to say. Also just moving from a x3 leveraged to x2 could split again. However I would have to believe gold miners are getting excited per once/the price of oil per cost. Now that everything has tanked gold is looked at as a safe haven and things being cyclical well... I think miners are due. Larger miners will be looking to lock down some nice sized prospects to fund future projects. JNUG has not seen a large SPIKE north in a while even with all the momentum in gold and I think we might be in for a good ride. Keeping gun powder on the side and looking for a solid entry.
JNUG
Index Top Ten Holdings %: Sibanye Gold 5.58% Pan American 5.40% Kinross Gold 5.36% Northern Star Resources 4.91% Gold Fields 4.53% Yamana Gold 4.08% Evolution Mining 4.05% Detour Gold Comp 3.49% De Minas Buenaventura 3.34% B2Gold 3.31%
Index Country Weightings %: Canada 51.57% Australia 20.36% South Africa 12.20% U.S. 5.20% Peru 3.34% Jersey 2.19% U.K. 1.96% Mexico 1.60% China 0.89% Turkey 0.70%
Maybe one more tight split the moon.
Comment
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Split will happen on April 22, 2020. 10 to 1 reverse split. PRE:10 Shares AT $6 = $60 POST:1 Share at $60 = Will be 1 Share
I would imagine it will slump to the $25 dollar range possibly until juniors pick up.
My thinking with the reverse split coming into play April 22nd, it will reduce the number of shorts. At these price levels, it allows more to play a cheap game, rather than take a solid position...bottom feeders, is what I have heard others call them.
Thanks for the analysis.
CopperMaiden
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@Renov8, I had never looked up if there was a split coming I had only looked up history.
tuongvy0501
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It loos less attractive after RS
mnovo
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very well put together
Bromar10
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I am trying to find information regarding price action PRIOR to reverse splits. I know historically the price usually depreciates post split (although not the case with Jnug last time). For a fairly new options trader, what do you expect the price action to be in the days leading up to the split on April 22?
Renov8
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What makes you think there is going to be a slump in price post split?
CopperMaiden
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@Renov8, Merely a prediction but it has no where to go right now. Sharks maybe move in with the split to play with price, head fake break out's. I can't see juniors gaining a ton of traction rate away. No buddy will have great earnings reports than when gold is higher in demand physically, production/earning reports from the price & attention goes to juniors? Just thoughts.
Thanks for the analysis.