Friday, December 30, 2016

Shorting $JNUG the Junior Miners ETF

What a year, huh?  A lot of volatility, crazy happenings around the election and overall a 10% gain in the SPY.  So, what did I do for myself?  Nothing good.  As with every year, I think I can trade my way to profits, and that hasn't worked.  Maybe it works for other people, but never has for me.

So, I am back to trying a sensible long term strategy.  This time, revisiting this strategy of shorting the leveraged ETFs.  I think I spread myself too thin last time, a lot of different ETFs, and trying to guess market direction, instead of using the daily rebalancing of the 3X ETFs in my favor.

So, I am now short $JNUG, the Junior miners 3X ETF.  I am offsetting this with a long position in $GDXJ, the single junior miners ETF.  I am using about a 2.6% ratio rather a flat 3.0 as would be indicated.  I'll let you know how it works. 

From my observation, $JNUG is one of the most volatile of the  #X ETFs, and is also available to short on occasion.  I got some.  We'll see how it works.

Thanks for reading, I'll let you know how it works out.