I just posted similar comments on the HUI shorting on my forum:

Pull up a recent chart for the HUI and you will notice a couple facts that make a strong case for the phoney market that is heavily manipulated. First off, in the month of May, the HUI climbed from about 300 to 404, a gain of more than 30%, yet even so about every other day the index was in the red. That would be normal trading behaviour for a volatile index as people take profits on the way up. In the month of June so far, every day has been red except four. That includes 7 sessions in a row with sharp losses and not one recovery. Does this seem normal? Would someone care to share with me a single other sector in the world that trades like this?

So what happened in June that warrants the tag of manipulation? Well, options expiry. And you know the crooks that were selling call options all through the run up, at a nice premium I might add, were not going to let those options finish in the money. So they bombed the larger gold juniors everyday for more than a week, and were pounding the metals too for good measure.

Nothing irks me more than the people who pretend this is not happening. If you do not have the balls to admit the market is rigged, or you do not have the experience to see it in the trading data, so be it. I have spoken with quite a few senior fund managers and traders, many of whom appear on TV on a regular basis, yet none will admit in public that the market is rigged, yet in private they mutter that something is not right. Until more people put their reputations on the line and stand up to denounce this crap, nothing is going to be done about it.

It is absolutely ridiculous to me that the same people who pound the table and claim the funds are manipulating commodity trading from the long side refuse to even consider the possibility that big institutions have been shorting the hell out of the commodities and are getting away with it. If oil goes up, it is a scheme by funds to drive prices higher that should be investigated. But gold goes down suddenly and in contrast to normal market behaviour and everything is just fine, absolutely no reason to think manipulation is a factor? Do these people not see how stupid they look?

Now if the SEC did investigate and fined one of the big houses for a breach of the anti-trust legislation for market manipulation, I know it would be just a slap on the wrist and it would not end the scam. But at least it would validate what we have been pointing out for years, and people would not be able to pretend any longer that it does not exist as a problem.

I do not expect anything to change. And btw, one other observation about the HUI chart: we have achieved higher lows on each of the corrections this year and buying the dips has been the profitable trade.

http://stockcharts.com/h...

cheers!

mike