Based on info on the Direxion web page for NUGT, NUGT is built purely upon swaps associated with the Sprott Gold Miners ETF (SGDM). This totally surprised me. I thought NUGT might be trading individual gold related stocks each day .... but no, not at all. If you then look up the holdings of SGDM, the top 10 holdings are as follows: FNV, GOLD, GG, NEM, RGLD, AEM, EGO, ABX, GFI and AUY. These are in order of largest to smallest holdings. FNV represented 30+ percent of their holdings. Wow. Today SGDM lost 7.11%. Because of the swap situation (which I don't really understand that financial instrument but somehow it is used to get the 3X power of NUGT), NUGT lost 23% today.
SLW up in after hours on exceeding revenues and profit projections. Could be a good bellwether for PAAS when they report later this week (Thursday PM).
I've held BIOA for more then a year now. For a while I was watching the daily trading on Level 2. BIOA has always been a low volume stock. Sometimes only 20K shares trade in an entire day. Most of the trading was in 100 share lots that were separated by minutes (and more - 5 minutes). Think about it. Who would buy or sell a 100 shares at say $10/sh and then pay a $10 commission on that trade. You're losing 10 cents on every trade just due to commissions. My point is that all of those 100 share trades are not coming from actual investors. They are coming from the market makers buying and selling the shares to themselves for a net zero gain or loss. No commissions when you are a market maker. They are just throwing out those trades to test the market. On a 20K volume in one day, if you filter out all of the 100 share trades, there may only be a handful of actual retail trades. It's a very thin market. And it is extremely easy to manipulate. The market maker can essentially take the share value any where they want it. And it costs them hardly anything. When you see market moves as we have seen lately, it is all manipulation. Some big trades (10K shares) are followed by a bunch of 100 share trades, all in control of the MM's. My advice is to ignore all of this activity and hold tight. Or even buy at these low levels. The real potential of BIOA will become obvious in 2016.
Thinking this will provide a bump to the gold market. On the other hand, a weaker Euro/stronger dollar combination will hold it down. However this may also lead to a stronger Euro given that Greece will no longer be a money sink. Bump up then. Place your bets everybody.
The title "Silver continues to tank" is no longer relevant. When this post was started on April 22nd, silver was at 16.05/oz. Since then it was as high as 17.70 and as low as 15.80. Not exactly tanking. More like sustaining. PAAS stock price on April 22nd was 9.12, going as high as 10.33. Again .... not exactly tanking. Time for more dire predictions.
The ascent of PAAS is certainly encouraging. Let's hope it continues. In my opinion, silver and gold pricing has already taken into account any interest rate increases to be made by the Feds in August (or looking like it will slip into Sept or Oct). I hate to wish for bad things but it would help if Greece continues to be a bad boy in their fiscal responsibilities, and it would help if the US Dollar would weaken a bit relative to all other currencies. Relative to Gold, Silver is undervalued by about 30%. The historic ratio between these two is nearer 55:1 . Currently the ratio is about 75:1 . That correction would value silver in the low $20 range. This is why I am a long term holder of PAAS.
I'll give you a few words of the harshness in my wife due to my use of margin. It basically changed my life. I hope everything turns out okay for you but margin is the DEVIL. My experience: I worked for a company in the 90's (Overland Data later changed their name to Overland Storage). As a benefit to this employment and my personal contribution, I received approximately 77,000 shares. When the company went public in 1997 I became a millionaire, one of my life long goals was achieved. But then I got cocky and through multiple investments where I used margin I was heavily invested in the market, mostly tech stocks and Internet related stocks. Well ... you know the history. One of the stocks I bought on margin was Yahoo at about $115/share, AOL at $95/share and many others. These are just examples. In 2000 the tech bubble burst, although at the time it seemed more like a slow bleed, and I held onto stocks that I was sure would come back. I even bought more at the time thinking I was getting bargains. Margin calls eventually came. Instead of selling, I deposited more cash from my checking account. That dwindled. I didn't inform my wife of the situation. Embarassment and feelings of failure were all tangled up in that decision. More margin calls, forced selling. I finally got out. My Million Dollars was now about $50K. My wife left. My life sucked. I literally considered suicide. My advice to you: Just don't go there. This is no market to use margin in.
End of story. I swore never to use margin again. I still invest, but carefully, and with a more long term approach. I'm still on the poor side. But I have learned to live with less, and greed and acquisition of material goods is not part of my life anymore.
I hope my story is not your story. Invest wisely.