The U.S. dollar, Treasury yields, and gold prices are all working together to create their own symphony. ETF traders have the ability to bring this music to their ears with four leveraged Direxion Investments products.
For moves in gold prices, traders can use the:
- Direxion Daily Gold Miners Bull 2X ETF (NUGT ): seeks daily investment results, before fees and expenses, of 200% of the daily performance of the NYSE Arca Gold Miners Index. The index is comprised of publicly traded companies that operate globally in both developed and emerging markets and are involved primarily in the mining for gold and silver.
- Direxion Daily Gold Miners Index Bear 2X Shares (DUST ): DUST seeks daily investment results before fees and expenses of 200% of the inverse of the daily performance of the NYSE Arca Gold Miners Index. The fund invests in swap agreements, futures contracts, short positions, or other financial instruments that, in combination, provide inverse or short leveraged exposure to the index equal to at least 80% of the fund’s net assets.
For the ebbs and flows in Treasury yields and prices, traders can use the:
- Direxion Daily 7-10 Year Treasury Bull 3X Shares (TYD ): The fund seeks daily investment results, before fees and expenses, of 300% of the daily performance of the ICE U.S. Treasury 7-10 Year Bond Index. The index is a market value weighted index that includes publicly issued U.S. Treasury securities that have a remaining maturity of greater than seven years and less than or equal to ten years.
- Direxion Daily 7-10 Year Treasury Bear 3X Shares (TYO ): TYO seeks daily investment results before fees and expenses of 300% of the inverse (or opposite) of the daily performance of the ICE U.S. Treasury 7-10 Year Bond Index. The index is a market value weighted index that includes publicly issued U.S. Treasury securities that have a remaining maturity of greater than seven years and less than or equal to ten years. TYO is the ideal play if yields continue to climb as they did during Monday’s trading session.
Fiscal Stimulus Makes for Stimulating Moves
This week traders have been digesting news on additional government stimulus. As the White House decides what to do next to help prop up the economy, traders will be watching the interplay between Treasury yields, the dollar, and gold prices.
“Gold could be underpinned over the short-run with some traders saying the fresh fiscal stimulus along with record low U.S. interest rates will weigh on the currency in the coming months,” an FX Empire article said.
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