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Gold/Mining/Energy : Gold Price Monitor
GDXJ 42.20+1.7%Jun 18 4:00 PM EDT

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To: Julius Wong who wrote (115195)10/5/2021 10:18:22 AM
From: Sun Tzu3 Recommendations

Recommended By

   of 116189
Same difference. Whether you trade it or not, the information contained in a long term leveraged fund chart is unreliable. GDX is what moves. NUGT and DUST are its shadows and are distorted.

Here are two charts to illustrate the point. The first is a 7 week chart and you can sort of do technical analysis on the leveraged fund NUGT, but even so, it is still much better to do it on GDX.

The 2nd is a 5 year chart and you can clearly see that while the two are correlated, the TA relationship completely breaks down when you look at NUGT vs GDX.

7 Weeks

5 Years

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