Winning Stock Forecast: NUGT And VXX Returns Up to 15.95% and 14.43%

In our winning stock forecast, we have the two most noteworthy performers: VXX and NUGT both for the long position.

In our last outlook for the stock market in 2019, we discussed conditions of a stock market in an upcoming 2019, which is getting bearish, leading indicators are signalizing the beginning of the economic slowdown, volatility is increasing. This is the reason, why investors begin to seek a “safe haven” in Treasury bonds and Metals, which directly affected the price of the Gold and volatility.

The Direxion Daily Gold Miners Bull 3x Shares (or NUGT) is a 3x leveraged exchange-traded fund (ETF). Traders are watching NUGT for a leveraged play on rising gold prices.  The goal of the fund is to look for daily performance results that equal 300% of the performance of the NYSEARCA Gold Miners Index and NYSEARCA is an index of companies that are connected to the gold and silver mining process. To accomplish these goals the fund invests in companies in the index, as well as leveraged financial instruments.

The same refers to VXX. Since you can not directly invest in VIX, another product (VXX) was created for the volatility trading purposes. It attempts to track the VIX index through the daily percentage returns of the near-term VIX futures. As it is highly correlated to VIX, traders buy VXX when they expect higher volatility. In our case, fear of a next economic slowdown and a possible recession has increased significantly and that brought us to higher volatility levels. I Know First algorithm showed fantastic precision and successfully predicted this scenario for both NUGT and VXX.

How to interpret this diagram

On December 20th, 2018, I Know First’s top stock predicting algorithm made a forecast for 7-Day World ETFs Package Forecast.

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Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster.

Please note-for trading decisions use the most recent forecast.