It sure looks like someone is using up an aweful lot of ammunition to keep ECU stuck at 66 cents during the last few sessions. Another half million shares have traded today and the stock remains fixed at the same price level once again. Given the technical significance of a breakout from here this price is a line in the sand that is being defended. There will probably be the usual selloff in the metals at the op-ex window, and perhaps the shorts are counting on that to cap the juniors and drive ECU lower.

Traders point out that volume leads price. This last week we have seen a heavy volume as buyers have been willing to step up. Lets see if this latest round of buying is enough to break the grip of the shorts that are holding down the stock. The institutional money is already covered now that the last round of PP shares were free trading. It is probably just retail and hedgefund spec shorts that are now trying to keep the stock from breaking out.

I tried shorting a few PM stocks last week and my bank told me they have no inventory to lend. Well, I guess they have then all set aside for the big boys to play. I cannot count the ways that that the small investors have been screwed in this market.

cheers!

mike