Its ironic that I posted on KXL today that I did not see any manipulation going there with the share price just because small lots were driving the trading. Its not that every time something unusual happens I must automatically assume a scam is going on behind the scenes. For me it comes down to a long history of many instances where things do not smell right.

I guess Billid will consider this another example of manipulation that is not happening, because it cannot be proven and its based on observations, but damn it, if you get a similar pattern of counterintuitive trading that is repeated for a long time, I have to say it is not just random behaviour that can be explained with the usual excuses.

Here is some commentary of the Cafe tonight:

"

Bill,
It is Wednesday night as I write this observation on what today’s negative divergence between gold and the HUI means for the rest of the week. Wednesday, gold rose $8.20 while the HUI dropped 0.61 points. I have been studying the data for similar gold/HUI divergences that have happened over the last year. These divergences often precede a major gold takedown with the greater magnitude divergences having more likelihood of a takedown. Wednesday’s magnitude of divergence was not extreme, however it was significant. These divergences usually are followed by a gold takedown the next day, however sometimes the cartel plays cat and mouse and the takedown occurs 2 or 3 days later. Another possibility is a double negative divergence in which gold rises 2 days in a row while the HUI drops 2 days in a row. These double hits always proceed a heavy gold clobbering. So how is it that the HUI investors anticipate these gold takedowns over such a short time frame? The amount of selling required to cause the HUI to drop on a large gold up day could only be done by the large investment houses commonly known as the gold cartel. The cartel has been wrong on the gold market for 7 years, but they know what will happen in two days? This is massive insider trading, and it has been happening on almost a monthly basis. Regards,
-Bryant" - ENDQUOTE

I also want to point out that I have observed the same thing many times, and come to the same conclusion.

cheers!

mike