Direxion Daily Gold Miners Bull (NYSEMKT:NUGT)

TSIF (99.96) Submitted: 7/12/2012 1:38:42 PM : Start Price: $40.95 NUGT Score: +7.11

NUGT undershoots and overshoots. As most leveraged ETF's it's a disaster. It dipped to $7.90 on May 15th and then "soared" to $13 three weeks later, leaving a nice gain for those who tried to "play" it, but a difficult one to book as the temptation is to hold large gainers for leverage and even more gains. While several gold miners were hit hard the last few days the ETF undershoot again, (in my opinion and baring further drops). Large miners such as Goldcorp did drop almost 20%. All in all, it's a crapshoot to upthumb any ETF. The risk at $8.00 seems minimal but this could continue to tank. Playing it for a 30-40 point upside means leaving one open to a 30-40 point downside. Risky CAPS play.