Our Yamana (AUY) trade is working. Let’s go through gold and silver. (April 12, 2016)
GLD SLV GLD SLV SLW GLD AUY
I’m going to keep going on Yamana ( NYSE:AUY ) as long as it continues to work. I like to, when I can, use these Free Chart of the Day videos as a way to help you make money. That is what it’s all about so I want you to be doing that. Gold, SPDR Gold Trust ( NYSEARCA:GLD ), we’re still in a trading range, but when you look at the strength of gold don’t just think about trading GLD ( NYSEARCA:GLD ), think about trading the individual stocks. I’m talking about some of these in a different way in our Strategy Session tonight on oil. Where oil is breaking out above $40.00 a barrel and you can think about trading oil. Or you can look at some of the stocks that are really popping on that; so we’ll look at gold in the same way. You look at the recent resistance here at 121.00, 122.00, something like that. Silver though, iShares Silver Trust ( NYSEARCA:SLV ), is a little bit different, because this has already broken out. This has broken out above resistance. Gold, SPDR Gold Trust ( NYSEARCA:GLD ), you see it had this major breakout here, very extended. But this is still struggling with the top of the range. Silver, ( NYSEARCA:SLV ), not so much. The top of the range, that was yesterday’s news. Today, this has moved up even more. So you want to be looking at Silver; look at gold and you can see that money is definitely moving into these heavy metals.
Now, Silver Wheaton ( NYSE:SLW ), this is one way you can trade silver. Resistance right up there at 18.00, 18.10. But doesn’t this look a little bit like gold, in that it kinda, maybe, sort of wants to think about breaking out? But it hasn’t really done it yet. So we look at all of these things and as strange as it may seem Silver ( NYSEARCA:SLV ) looks better than gold, but Yamana Gold ( NYSE:AUY ) continues to look better than a lot of these other stocks. This is one where for how many days, I guess you could count this day, 1, 2, 3, 4 days in a row this has traded above the upper Bollinger Band, out of a massive volatility squeeze. This is what you want to see, volume continues to be really heavy. Now it wasn’t quite as heavy today, on Tuesday, as it was on Monday. But I’m looking at this and this is a scramble to get into this company. I think, frankly, you’re too late to be BUYING this right now. The time to be doing it was last week when we first covered the stock; even yesterday really wouldn’t do it. You want to be long when this is first breaking out of a squeeze. If you’re long though, I want to help you manage that trade. Look at the 15-minute chart, first thing in the morning this goes up and then it drifts sideways. Same thing here yesterday, goes up and then drifts sideways. Finally this morning, goes up and then drifts sideways. Same thing here.
So you’re seeing the moves in the morning or not at all. And that’s really the way you look at it, if it doesn’t move up first thing in the morning it’s probably done going up. So I think you can use, lets use today, meaning Tuesday, lets use that opening print. The low is 13.91, the open is $4.00, 4.12 is where it closed at. So if we just use that, we’ll use 4.12, we’ll go down to today’s intraday low, you’ve got about a 4 or 5 percent risk is all. So if you’re long the stock, again, I think it’s too late to buy right now, but that doesn’t mean you should sell. If you’re long the stock keep a trailing stop just BELOW today’s intraday low, CERTAINLY just below the upper Bollinger Band, which is at 3.83. So there are a number of different ways that you can keep your stop. But my suggestion is, use either the open or more likely, actually, the intraday low, 3.91. You put your stop, well I just put it at 3.87 and so I guess that’s where. The bottom line is this: When you’ve got so many days in a row when the stock gaps up or at least opens up and then continues to move higher, opens up and then continues to move higher, etcetera, etcetera. Then if you see the stock move back to a prior days intraday low, that tells you that something is different. Until that happens I just want you to stay long Yamana Gold ( NYSE:AUY ).
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