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DIREXION SHS ET/DAILY JR GOLD MINER faces challenges moving forward

DIREXION SHS ET/DAILY JR GOLD MINER(JNUG) currently trades at $5.12 and has fallen by 21.41% in the past 24 hours. Direxion will now reduce exposure to just two-times their underlying indices. The liquidity crunch has made obtaining triple leverage too costly in the current marketplace, so the company will begin dialing back the leverage starting in May.

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Based on this information, investorsQ rates this stock an 2 out of 10. We give it this rating because Leveraged commodities ETFs have gotten crushed in the latest downturn with many being forced to close due to extreme losses and/or early redemption triggers. Several popular 2X ETNs from UBS were forced to shutter after losses in hard hit sectors resulted in year-to-date losses of more than 90% in some cases. Notably, the company’s market cap is $586.58 million with a 52 week high of $105.24 and a 52 week low of $3.32.

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