What is decay?

de·cay /dəˈkāy/ – the state or process of rotting or decomposition. Decay comes in many forms, ( I will spare you the images of tooth decay and other forms of decay). Generally speaking, it’s erosion. For 3X etfs, volatility can create this ‘decay’ very quickly. Whatever you like to call it, it is not beneficial. We like to call it …

GDXJ/ JNUG Update 3/7/17

Unfortunately for the bulls, GDXJ didn’t get that gap up on Monday. We needed to see that bullish action to confirm that the move down was a retracement and not something deeper. All hope is not lost, but the prospects of breaking out to new highs on this move is unlikely. Gold and silver got hit today as well. The …

Will Fridays Trends Continue?

With the bullish reversal on Friday after Yellen’s conference, we could be setup for a nice rally for the week of March 6th. Both the USD and USD/JPY sold off on what one would think would be bullish (rate hike odds increased to almost 90%) for both currencies/ currency pair. As futures trading has opened for the week (3 pm …

When 3X ETF’s move

The leverage effect is clear in this chart of silver from last spring. The performance of USLV when silver took off from the high $17’s to $21 in a few weeks was jaw dropping, (not to mention JNUG and NUGT)  

Consider A Shift To These ETFs As Interest Rates Rise

This article is part of a regular series of thought leadership pieces from some of the more influential ETF strategists in the money management industry. Today’s article features Gary Stringer, president and chief investment officer of Memphis, Tennessee-based Stringer Asset Management. Operation Twist was the media’s term for the U.S. Federal Reserve’s (Fed) actions in late 2011 and early 2012 …

Young Americans Piled Into Some Horrendous ETF Trades Right After the Election

Mimicking President-elect Donald Trump — who has called himself “the king of debt” — risk-loving millennials used exchange-traded funds that employed leverage to juice their returns in the wake of the real-estate mogul’s election victory. That didn’t work out so well for them. With preferences for gold and volatility, however, they were largely in line with what the consensus called …