Making Money with Nugt and Dust

By: Mai Fadzilah

How to Trade NUGT and DUST
Unlike stocks where you buy and hold and collect dividends. Nugt & Dust is something you buy and sell within weeks or months. Some traders even buy and sell within the same day. I hope you see the intensity of this ETF. We will focus on buying and selling within 1 to 2 months especially near or just after Fed Meetings. 

Understanding The Relationship
Between Nugt & Dust

DUST and NUGT was launched in 2010 by Direxion Investments. They do not track gold but rather tracks the index that tracks gold miners.

  • Dust generally outperforms when the miners are not doing well or when gold prices drops. It aims to deliver triple the inverse of the daily price performance of the New York Stock Exchange (NYSE) Arca Gold Miners Index.

  • Nugt is the opposite Dust. It looks to triple the return of the NYSEARCA Gold Miners Index on a daily basis. When Gold increases in price or when miners have good news, Nugt will spike.

Identifying The Pattern on How
Nugt & Dust Behaves During Fed Meetings

  • 'Rate Hike' Meeting
    --> Dust High, 
    Nugt Low
    --> Sell Dust, Buy Nugt

    After 'Rate Hike Meeting' 
    After the 'Rate Hike' meeting, Dust will generally drop from high to low in the following 5 weeks leading to the next Fed meeting while Nugt will slowly increase from low to high. It is a good time to buy Nugt during the first week after the rate hike meeting. 
  • 'No Rate Hike' Meeting
    --> Dust Low, Nugt High
    --> 
    Buy Dust, Sell Nugt

    After the No Rate Hike Meeting --> Buy Dust
    After the 'No Rate Hike' meeting, in anticipating of the next 'Rate Hike' Fed Meeting, Dust will gradually increase from low to high while Nugt will gradually drop from high to low.

2017 Fed Meetings

1) Jan 2017 Fed Meeting - No Rate Hike 
31 Jan - 1 Feb 2017
North Korea Launch Missiles on 11 Feb

2) Mar 2017 Fed Meeting - 0.25% Rate Hike
14 Mar - 15 Mar 2017
North Korea Launch Missiles on 6 Mar, 4 Apr, 15 Apr, 28 Apr 

3) May 2017 Fed Meeting - No Rate Hike
2 May Tue - 3 May Wed

  • 01 May - Dust $34.75, Nugt $30.19 (SS Nugt 1;4)
  • 02 May - Dust $34.44 & Nugt $30.51
  • 03 May - Dust $35.40, Nugt $29.74
  • 04 May - Dust $37.60, Nugt $27.75
  • 05 May - Dust $35.05, Nugt $29.58
  • Dust (Low to High)
  • Wk 1 (32.98) : 35.22, 35.36, 33.30, 31.21, 29.82
  • Wk 2 (28.98) : 29.56, 28.98, 27.45, 29.87, 29.05
  • Wk 3 (23.03) : 27.96, 29.88, 28.60, 29.48, 28.73
  • Wk 4 (29.63) : Holiday, 29.84, 29.46, 29.88, 29.37
  • Wk 5 (27.17) : 29.33, 25.20, 25.77, 27.11, 28.43
  • Wk 6 : June 2017 Fed Meeting Week
  • Nugt (High to Low)
  • Wk 1 (31.59) : 29.63, 29.45, 31.11, 33.13, 34.61
  • Wk 2 (35.48) : 35.00, 35.72, 37.46, 34.15, 35.07
  • Wk 3 (34.81) : 36.31, 33.71, 35.14, 34.06, 34.85
  • Wk 4 (33.59) : Holiday, 33.46, 33.84, 33.26, 33.80
  • Wk 5 (36.10) : 33.86, 38.74, 37.85, 35.91, 34.18
  • Wk 6 : June 2017 Fed Meeting Week

North Korea Launch Missiles on 13 May, 21 May, 29 May, 8 June

4) June 2017 Fed Meeting - 0.25% Rate Hike
13 June Tue to 14 June Wed

  • Fed Meeting Week (Dust High, Nugt Low)
  • 12 June - Dust $28.76, Nugt $33.74
  • 13 June - Dust $27.91, Nugt $34.70
  • 14 June - Dust $30.56 & Nugt $31.31
  • 15 June - Dust $31.22, Nugt $30.49
  • 16 June - Dust $31.41, Nugt $30.20
  • Dust (High to Low)
  • Wk 1 (30.80) : 31.85, 32.52, 31.15, 30.01, 28.47
  • Wk 2 (30.35) : 29.23, 30.22, 29.70, 31.52, 31.08
  • Wk 3 (33.64) : 33.54, 4th July, 32.77, 33.44, 34.80
  • Wk 4 (32.63) : 33.22, 32.59, 32.29, 33.31, 31.78
  • Wk 5 (30.20) : 31.09, 30.36, 30.35, 29.74, 29.46
  • Wk 6 : July 2017 Fed Meeting
  • Nugt (Low to High)
  • Wk 1 (31.04) : 29.90, 29.31, 30.62, 31.78, 33.60
  • Wk 2 (31.28) : 32.73, 31.50, 31.99, 29.90, 30.26
  • Wk 3 (27.83) : 28.07, 4th July, 28.95, 27.81, 26.48
  • Wk 4 (28.41) : 28.03, 28.49, 28.71, 27.71, 29.10
  • Wk 5 (30.63) : 29.84, 30.28, 30.52, 31.03, 31.48
  • Wk 6 : July 2017 Fed Meeting 

North Korea Launch Missiles on 23 June, 4 July 

5) July 2017 Fed Meeting - No Rate Hike
25 July 2017 - 26 July 2017

  • Fed Meeting Week (Dust Low, Nugt High)
  • 24 July - Dust $30.79, Nugt $29.78
  • 25 July - Dust $29.87, Nugt $30.42
  • 26 July - Dust $27.52 & Nugt $33.09
  • 27 July - Dust $28.56, Nugt $31.52
  • 28 July - Dust $27.31, Nugt $33.08
  • Dust (Low to High)
  • Wk 1 () : 27.47, 27.59, 27.75, 27.97, 29.45
  • Nugt (High to Low)
  • Wk 1 () : 32.80, 32.79, 32.06, 31.93, 30.08

North Korea Launch Missiles on 28 July, 26 Aug & 29 Aug

6) Sep 2017 Fed Meeting - Fed Chairman Present,
No Rate Hike
19 Sep - 20 Sep 2017

North Korea Launch Missiles on 15 Sep

7) Oct 2017 Fed Meeting - No Rate Hike
31 Oct - 1 Aug 2017

North Korea Launch Missiles on 28 Nov

8) Dec 2017 Fed Meeting - 0.25% Rate Hike
12 Dec Tue - 13 Dec Wed

  • 11 Dec - Dust $30.94, Nugt $24.81
  • 12 Dec - Dust $31.37, Nugt $24.55
  • 13 Dec - Dust $28.10, Nugt $27.14
  • 14 Dec - Dust $28.38, Nugt $26.83 << Sell Dust, Buy Nugt
  • 15 Dec - Dust $28.66, Nugt $26.57
  • Dust (High to Low)
  • Wk 1, High (26.28) : 27.45, 27.49, 26.04, 25.70, 24.76 
  • Wk 2, Low  (25.01) : Xmas, 23.77, 28.85, 23.75, 23.70
  • Wk 3, Low  (22.65) : New Yr, 21.98, 22.64, 22.21, 22.23
  • Wk 4, Low  (22.99) : 23.02, 23.93, 23.56, 23.16, 21.31
  • Wk 5, Low  (21.55) : Holiday, 20.32, 21.41, 22.30, 22.19
  • Wk 6, Low  (20.73) : 22.09, 20.94, 19.63, 20.75, 20.27
  • Wk 7 : Jan 2018 Fed Meeting Week
  • Nugt (Low to High)
  • Wk 1 (28.90) : 27.76, 27.80, 29.15, 29.48, 30.29
  • Wk 2 (31.74) : Xmas, 31.84, 31.70, 31.72, 31.70
  • Wk 3 (33.60) : New Yr, 34.12, 33.14, 33.72, 33.41
  • Wk 4 (32.28) : 32.15, 30.93, 31.62, 32.09, 34.63
  • Wk 5 (34.06) : Holiday, 36.15, 34.40, 32.79, 32.91
  • Wk 6 (34.92) : 32.99, 34.70, 36.98, 34.59, 35.37
  • Wk7 : Jan 2018 Fed Meeting Week

2018 Fed Meetings

1) Jan 2018 Fed Meeting - No Rate Hike
--> Buy Dust, Sell Nugt
30 Jan Tue - 31 Jan Wed

  • Fed Meeting Week (Dust Low, Nugt High)
  • 29 Jan - Dust $21.93, Nugt $32.21
  • 30 Jan - Dust $22.48, Nugt $31.36
  • 31 Jan - Dust $21.70, Nugt $32.39
  • 01 Feb - Dust $21.77, Nugt $32.27
  • 02 Feb - Dust $23.97, Nugt $28.80
  • Dust (Low to High)
  • Wk 1 : 24.57, 26.55, 27.65, 28.25, 29.51
  • Wk 2 : 27.06, 26.97, 23.12, 23.20, 24.79
  • Wk 3 : Holiday, 26.84, 27.19, 27.40, 26.52
  • Wk 4 : 25.73, 28.10, 28.67, 27.81, 28.10
  • Wk 5 : 27.60, 26.06, 27.68, 27.41, 27.73
  • Wk 6 : 26.98, 27.22, 27.14, 28.15, 28.31
  • Wk7 : Mar 2018 Fed Meeting Week
  • Nugt (High to Low)
  • Wk 1 : 28.27, 26.01, 24.88, 24.42, 23.01
  • Wk 2 : 25.21, 25.27, 28.81, 28.91, 26.94
  • Wk 3 : Holiday, 24.70, 24.39, 24.03, 24.62
  • Wk 4 : 25.33, 23.08, 22.75, 23.25, 23.05
  • Wk 5 : 23.50, 24.87, 23.29, 23.41, 23.20
  • Wk 6 : 23.78, 23.64, 23.71, 22.85, 22.71
  • Wk 7 : Mar 2018 Fed Meeting Week

2) Mar 2018 Fed Meeting - 0.25% Rate Hike
20 Mar Tue - 21 Mar Wed

  • 19 Mar - Dust $28.06, Nugt $23.09
  • 20 Mar - Dust $28.82, Nugt $22.28
  • 21 Mar - Dust $26.49, Nugt $24.12
  • 22 Mar - Dust $27.70, Nugt $23.07 << Sell Dust, Buy Nugt
  • 23 Mar - Dust $25.40, Nugt $24.99
  • Dust (High to Low)
  • Wk 1 (25.66) : 24.31, 25.72, 26.89, 25.75, Hol
  • Wk 2 (25.63) : 24.94, 25.91, 26.14, 25.78, 25.38
  • Wk 3 (24.24) : 25.68, 24.74, 23.19, 23.95, 23.65
  • Wk 4 (22.62) : 22.89, 22.49, 22.39, 22.17, 23.16 
  • Wk 5 (23.48) : 24.04, 23.15, 23.77, 23.44, 23.04

  • Nugt
  • Wk 1 (24.65) : 26.00, 24.72, 23.47, 24.40, Hol
  • Wk 2 (24.53) : 25.28 24.32, 24.08, 24.26, 24.71
  • Wk 3 (25.94) : 24.40, 25.15, 26.91, 25.99, 27.25
  • Wk 4 (27.36) : 26.94, 27.32, 27.71, 27.97, 26.89
  • Wk 5 (26.18) : 25.71, 26.53, 25.89, 26.15, 26.64 

3) May 2018 Fed Meeting - No Rate Hike
1 May Tue - 2 May Wed

  • 30 Apr - Dust $24.41, Nugt $25.21
  • 01 May - Dust $24.25, Nugt $25.32
  • 02 May - Dust $24.11, Nugt $25.55
  • 03 May - Dust $23.32, Nugt $26.26 << Buy Dust, Sell Nugt
  • 04 May - Dust $23.31, Nugt $26.36
  • Dust (Expect Low to High)
  • Wk 1 : 23.25, 23.21, 23.37, 22.34
  • Wk 2 : 
  • Wk 3 : 
  • Wk 4 : 
  • Wk 5 : 
  • Nugt (Expect High to Low)
  • Wk 1 (07-11) : 26.25, 26.40, 26.12, 27.18
  • Wk 2 (14-18) : 
  • Wk 3 (21-25) : 
  • Wk 4 (28-01) : 
  • Wk 5 (04-08) : 

These are the remaining Fed Meeting in 2018

  • 5 wks to : 12 June to 13 June, with Fed Chairman
  • 6 wks to : 31 July to 1 Aug
  • 7 wks to : 25 Sep to 26 Sep, with Fed Chairman
  • 5 wks to : 7 Nov to 8 Nov
  • 5 wks to : 18 Dec to 19 Dec, with Fed Chairman

Note : NUGT & DUST are not suitable for all investors. It should be utilized only by investors who understand the risks associated with seeking daily leveraged and inverse investment results, and intend to actively monitor and manage their investments.

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