Ratio Traders on the Short Bus Today

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#1 Wed, Jul 13, 2011 - 5:52pm
Austin, TX
Joined: Jun 14, 2011

Ratio Traders on the Short Bus Today

These guys are looking like the stupidest morons on Wall Street the last couple of days. Gold goes up and the stocks go up, what can they do? They can't sell gold because it's going up and if they sell the miners they are overwhelmed. In fact, they are being crushed in their short positions. It is my opinion that they are responsible for the heavy option interest at the strikes where most of the stocks were seeing resistance the last week or so. They were trying to make it to Friday but today just DESTROYED them. GSS was up 10% on more than double it's normal volume. GG was up 3.5% on almost double normal volume. Look at the last two candles on this chart and tell me tomorrow won't be more of the same. Yesterday was a massive outside reversal of the trend and today was a continuation candlestick.

These guys are giving away money at this point. If they don't cover their shorts they are screwed and if they cover their shorts, they will drive the HUI ever higher. Buy GDX, buy some miners in the HUI like CDE or GG or HL. GSS isn't in the HUI but it has been a favorite target of the shorts and they are getting absolutely crushed.

I am telling you, this trade is the easiest money you have ever made if gold and silver keep running. Someone is after the Ratio Traders already, the massive volume in the miners two days before option expiration clinches that for me.

Edited by: wrs on Nov 8, 2014 - 5:20am