The only problem with Sinclair's theory is that the large short positions do not show up in the reports. Perhaps in the more liquid HUI component stocks there is hedge fund shorting, but in the smaller juniors like DIB, IPT, AUN, etc... that have been destroyed on positive news and have minimal short positions outstanding. Whats up with that? There are 2000 junior mining stocks and most are flat, which means the heavy propaganda campaign against the juniors is probably the reason for the weak sentiment.

ECU is a different bird, since I beleive its daytrading shorts that are the culprit. Its affected like all the other juniors in that the buyers are staying away, but it gets walked lower day after day on heavy daytrading.

This kind of environment cannot last. There is too much value built into the stock and when the trend reverses that losses will be made up quickly. That is why I am still hanging around and waiting it out.

cheers!

mike