Simply a NUGT alert.
The 3x derivative for mid-sized gold and metals equities shrunk its share count by a factor of 10.
This means less liquidity, or trading volume, presumably. The share consolidation raises the price of NUGT (
NYSE:NUGT,
Stock Forum) to almost $100.
Lots of talk this month about the Direxion leveraged derivatives. NUGT is the long one for gold; DUST (
NYSE:DUST,
Stock Forum) is the short one.
I own NUGT, as our TCR family knows. Even staid market professionals I know are raising an eyebrow at the price swings of this ETF (fund).
Just Tuesday, for example, NUGT has see-sawed in a range of 14 percent or so. At noon-thirty ET the NUGT was about $97.15, or 13 percent higher than its low for the day.
I will have more later about another theme working its way through recovering metals equities. Featured names likely will include True Gold (
TSX:V.TGM,
Stock Forum), Paramount Gold (
TSX:T.PZG,
Stock Forum) and several others.
Also: Just heard from Declan Costelloe of Colt Resources (
TSX:V.GTP,
Stock Forum). The chief operating officer is in the states from Portugal, where he works with Colt's Nikolas Perrault.
We are expecting potent tungsten (and gold) reports from the engineer Irishman, who as COO was asked to change his surname to CoOstelloe but politely declined.
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