This article explains the trade. Like preditors they do go after the weaker members of the herd. However at current gold prices even some of them will be making a lot of money.

http://traderdannorcini.blogspot.com/2011/02/hui-gold-ratio-gld-and-ratio-spread.html

I couldn't agree more, in fact this points to a larger phenomena - the fact that fast money now dominates nearly every aspect of the market. That alone is reason to steer clear of any company or product that might be a target for one of their "trades."

I have to laugh actually. People I know ask me for advice, then recoil in horror when I tell it like it is. They look at what I'm doing and they're all, oh, but thats so risky! I guess they learned nothing from 2001 or 2008. That alone tells me it will happen again.

Ironically, we little guys play in one of the safest corners of the market. We're too small for the big guys to trample, and our own vultures don't have enough push to really make it stick. They're so obvious anyway, that most of the time you can easily avoid them.

ebear