I have an issue with my receiver where every 5 seconds the signal goes completely quiet. This lasts about one second, then it comes back (static and all). Sometimes it won't do it for a while, and other times it is doing it all the time.
Sounds like you may just be on the verge of the squelch threshold.
If you go into the SET mode (a quick tap of SET) and change the RF/SQL option (push either UP or DOWN to get to the RF/SQL controls) and then with the vfo knob to change the option to your liking, then tap SET again. Beware that if you hold SET too long, you'll just switch the antennas.
You've got 3 choices
S9 (squelch, SQ)
AT (Automatic)
R5 (rf-gain, rs)
S9 means that gain is max and the RF/SQL knob is just a squelch control.
AT means rf-gain control for SSB, CW, and RTTY, BUT squelch only for AM/FM
R5 means that the knob is just an rf-gain control for all modes.
I usually stick to either AT or RS. Give either one of those a shot and adjust the knob so that it isn't too close to squelching out, or running with too low of an rf-gain.