Its pretty obvious when the dollar is down a third of a point yet gold is selling down sharply that this is not just a normal market. I have been pounding the table about manipulation for a long time so this is nothing new, and of course there is always a big effort to nail the metals whenever the poobahs are making public statements.  I think ECU has become a bellweather stock that is so widely held that it gets attention from the shorts when an obvious bear raid is underway.  Its pretty easy to pound the stock lower when the sector is under presure, and then close out a short late in the day for a nice, safe profit. 

No matter how much the company has on the go, its top heavy with sellers right now, and has been for a while.  Retail investor confidence is low, and despite the weak share price there are still many people who have gains of several hundred percent, that are liable to sell out of fear.  Down she goes...  I have been through a few of these bear markets and its always a miserable time, but the reason I stay invested is because the metals remain in a strong uptrend, and because the stocks can reverse sentiment very quickly.

Whenever a message needs to be sent out that the PM sector is a bad place to invest, expect that ECU will be hit hard again.  The shorts are in control right now.  They have been for a while.  Until the sentiment level improves, and until the daytrading players get hit in the mouth a few times and realize they can no longer push the stock around, this is how its going to be.  If you are committed to the story and can ride it out, no problem.  But if you are nervous and hanging on by your fingernails, this is not the kind of market that will give you much to feel good about, and it may be weak for a while yet.

cheers!

mike