Should I Trade JNUG? | The Mesh Report

Should I Trade JNUG?

Christian Tharp, CMT October 21, 2016 Comments Off on Should I Trade JNUG?

Yesterday we went through the current trading picture for NUGT.  (If you missed that, you really should read it!)  Today let’s talk about JNUG for the first time.

Like NUGT, JNUG is a leveraged ETF.  JNUG is based on the “junior” gold miners.  Think “Junior NUGget.”  The “juniors” are smaller gold mining companies, as compared to the giants like Newmont (NEM), Rand (GOLD) and such.  So NUGT is the “big boys” and JNUG is the little guys.

Similar to small stocks vs large stocks, junior gold miners in general are much more volatile than their big brothers.  Then add in leverage, and – yep you guessed it.  JNUG is very volatile!  Here’s a chart comparing JNUG to NUGT to GDX over the past year.  JNUG is the candles, NUGT is the blue line, and GDX (unleveraged senior gold miner ETF) is the green line.


As you can see, JNUG is even more volatile than NUGT!  A picture is worth a thousand words.  It goes without saying but it has to be said – JNUG is for experienced, more risk-tolerant investors.  No matter what, don’t bet the farm on JNUG!

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