According to our poll yesterday, the majority of you guys here are buyers of gold. I decided to a stab at this falling knife, and added NUGT to the portfolio today.
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As far as the markets go we have more of the same. Strength continues to be sold and we are prisoners of Euro headlines. Scalping seems like the only way to play longs, but we are getting to levels where select stocks will work.
Take $BCOV for example, one of my buys yesterday, when a stock gets cheap enough, buyers will eventually step in and support the stock.
Maybe I’m wrong, but I have a hard time shorting here. Maybe everybody got it wrong, including myself, when they said Facebook will mark the top of the market, maybe it marks the bottom.
A true costanza market.
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Stay away from gold unless you want to short it.
The problem with NUGT begins if a trader tries to treat it like a normal gold stock. The usual axiom, what goes down must come back up does not apply because of leverage.
January 3, 2011: NUGT-$39.71, GDX-$61.80, about 2:3 ratio.
Now look at gold 17 months later: NUGT-$7.84, GDX-$39.33, about 1:5 ratio.
Both track ARCA gold miners index but NUGT attempts to duplicate the daily percent change times 3, before fees.
well, played that poorly.
stopped out @ 7.77, -.20
actually you didn’t – you got stopped out at your stop-loss level – there is NOTHING wrong with that in my book..
letting losses to accelerate in 3x ETF – this would be poor play
Like the last comment and so true. Much talk about Facebook marking the top, hell it may mark the bottom as SPX has had orderly selling making this a nice correction near 7% off highs.