I closed NUGT for a loss of 16 cents, and it’s a shame as I was up over a buck on the trade. Greed got the best of me there. I also sold out of NOW & QIHU for quick profits, but stopped out for a loss in JRCC.
New position added today: Small bomb, IQNT.
I have to run out a bit early today, but will be back tonight with some trading ideas to finish the week.
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IQNT getting crushed afterhours. Any news?
I don’t see any news, but it looks like a big block went though. We’ll have to see how this thing opens.
Yeah the bid is already higher than the last trade, hopefully everything remains intact. Thanks for the tip RC!
DUST has been my 2012 loser of the year.
#2013 back with a vengence.
NUGT is a funny trade. Due to high leverage, there are a lot of head-fake reversals going both ways out of pure nervousness. Sometimes it doesn’t even follow small cap miners.
My gut tells me that traders have a strong memory (and healthy respect for) of two things in the past history of NUGT’s chart::
1) NUGT has gone beyond all trader’s expectations in the chart for how low it can go before it will hit bottom and start a chart reversal. This year’s chart low points in the $8s and $7s defied all logic and caused a lot of otherwise good traders to sell out positions for a loss.
2) NUGT has behaved more like a risk asset than like an inflation hedge in recent cases where the government played the hand of more fiscal uncertainty and QE. Trader’s normal instincts would have predicted that gold was headed up due to future potential for inflation – yet NUGT tanked just like other risk assets in the face of a looming fiscal crisis.
So here we are again in what might be viewed as a very similar situation.