Gold Regains Its Glow; GLD, JNUG Surge

The SPDR Gold Trust ETF (NYSEARCA:GLD) and Direxion Shares Exchange Traded Fund Trust (NYSEARCA:JNUG) are rallying in early trading

Aug 20, 2015 at 10:52 AM
facebook X logo linkedin


Gold stocks caught a lift yesterday from a swooning stock market and the newly released Fed minutes. Specifically, the central bank tapped the brakes on September rate hike speculation, which simultaneously weighed on the dollar and boosted the malleable metal. That upward momentum is carrying through to today, as evidenced by the action at the SPDR Gold Trust ETF (NYSEARCA:GLD) and Direxion Shares Exchange Traded Fund Trust (NYSEARCA:JNUG).

GLD was last seen 1.5% higher at $110.17, after flirting with its highest perch in over a month. In fact, since hitting a five-year low of $103.43 in late July, the shares have surged 6.5%.

Option traders have responded, too, based on data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). During the last two weeks, speculators have bought to open 2.52 GLD calls for every put, a ratio that outstrips all comparable readings taken in the past 12 months. In other words, traders have been buying to open calls over puts at an annual-high clip.

Meanwhile, JNUG has burst to a 13.2% gain at $12.77, and muscled atop its 40-day moving average for the first time since mid-June. Longer term, however, the exchange-traded fund (ETF) remains nearly 48% lower in 2015.

Not surprisingly short sellers have been upping the bearish ante, with short interest doubling during the most recent reporting period -- and now accounting for 17.7% of JNUG's float. Nonetheless, at the ETF's typical trading volume, it would take less than one day to buy back all of these bearish bets.

The SPDR Gold Trust ETF (NYSEARCA:GLD) and Direxion Shares Exchange Traded Fund Trust (NYSEARCA:JNUG) are by no means the only gold names staring at solid mid-morning gains. In fact, even Eldorado Gold Corp (USA) (NYSE:EGO) -- which bucked yesterday's sector-wide advance -- is running hot, up 2.8% at $3.99.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI