Quick Win by the Algorithm: DUST For The Gold

Quick Win By the Algorithm

On February 24, 2017, the I Know First algorithm had predicted a bullish forecast for Direxion Daily Gold Miners Bear 3X Shares. (DUST). DUST had a signal of 47.59 and a predictability of 0.21. In accordance with the algorithm, the company reported gains of 19.13% experiencing a quick win by the algorithm.

As an exchange traded fund (ETF), Direxion Daily Gold Miners Bear 3X (DUST) results in a 300% inverse performance of the NYSE Arca Gold Miners Index.

After a rocky start for the U.S. stock market after Election Day, stocks are now starting to make a come back. In December, the Fed hiked rates due to the President’s pledge to boost the economy. These high rates resulted in a high demand for leveraged or inverse ETFs for investors who seek big gains in a short span.

In addition to high rates, gold prices in relation to the US dollar has now risen for 8 of the last 9 weeks. This delivers the best 1H performance in about four decades. Also, the total number of shares in gold ETFs increased by 3% this month. With gold prices jumping and a number of shares rising, ETFs like DUST have been seeing a net inflow for weeks.  The inflow for DUST  matches the prediction of the algorithm.

“With still a large amount of political uncertainty for this year, this position is likely to continue growing,” says Dutch Bank ING.

This bullish forecast on DUST was sent to current I Know First subscribers on February 24, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.