"That doesn't explain the trading pattern. It is not normal. Why would the stock open higher so often, only to start to sell off around 10AM, day after day after day. It seems obvious to me that a computer program is doing it. "
Are there stats on how often this sells off after 10AM? Must be 8 or 9 days out of 10. Even when the price is rising, it still sells off almost every day. How is that possible? Is it naked shorting? It sure seems fishy. Any reasonable theories to explain the way this ETF and all the mining stocks behave every day?
Someone seems to come in and sell/short a large # of shares to knock the price down into the close every day as well. If you watch from about 3:45 on it's clear as day. I've only been in GDXJ for a short period of time but I noticed the pattern almost immediately.
It's likely program selling which controls the stock price. I've seen it with SVM when they wanted to keep it down. You would see 10 shares trade at a time on an $8 stock. It holds true for spot gold as well. They take it down every day regardless of news.
It can only last for so long as their is huge investment interest and eventually it will win out. I've seen this so many times it's become comical.
Looking at the poor performance, anyone in their right mind (not including me since I'm hanging in) would be selling any chance they get. Investors want OUT. When the stock is this oversold and still cannot rally it's bad news.
SEC won't do anything. Manipulation is there but so what? If you're not happy then sell, or short. That's what everyone seems to be doing.
I don't think it is manipulation. These stocks just have too much risk and too little reward for the public to care about them. Costs have gone up and also production is down for some companies making things worse. Until they offer some kind of share buyback or huge dividend increase, i think these stocks will contine to be horrible investments.
I have noticed this same thing; the selloff usually starts anywhere from 30 minutes to an hour after the market opens. It is pretty much true for most gold and silver stocks. Mining stocks are simply not allowed to go up...now who has enough dollar power to make this occur? Who...I ask you. (my guess: the Fed through their partners the big banks like JP Morgan) We can't have the mining stocks go up because then people would start thinking gold and silver are a good place to store one's money. It's all rigged.