By their very nature, leveraged ETFs almost always grind their way to $0, being reverse-split repeatedly to keep them alive. DUST, the bearish-on-miners ETF, is no exception:
I have sometimes done overnight trades on DUST to good effect, but I’ve slapped my hand away all week long from daring to defy miners. Today, blammo, they finally got a good smack-down, as shown by GDX:
As I was watching DUST yesterday get beaten down to $8.40, I was VERY tempted to buy 1,000 shares just for the hell of it, but again, I stopped myself since it felt like the classic “grab a falling knife” move. Well, $8.40 is a distant memory, as this ETF has vaulted into the double digits again.
Oh, well!
