Loading ...Yep JNUG is the tail wagging this dog – More so at the moment. Currently Direxion has suspended new share creation of JNUG but left JDST unlimited. This is bullish for JNUG but means there’s a finite number of shares available to go Long GDXJ and and infinite number of shares available to Short it. So you have a positive bias to the upside for JNUG and a negative bias to the downside for GDXJ.
It’s only day 2 of the share suspension but my guess is that the disparity between JNUG, JDST and GDXJ will grow to the point where you could see both JNUG & JDST up at the same time by several percent, even with GDXJ down. This is a temporary condition and I’m extremely bullish on GDXJ and SIL for the long-term when the SHTF in markets.
If no market correction occurs between now and 2nd week of May after Le Penn loses the final round (as expected), then look to pick up GDXJ at a bargain during the week before the June 14th Fed rate hike meeting; after Gold’s been knocked down to low or sub $1200/oz again.