Yamana Gold Getting Hammered

OUCH! The bottom fell out of the bottom! My gold miner stock AUY is getting hammered by a strong dollar. Chart starts at my purchase, horizontal blue line is my DCA purchase price…down 13.7%. The ADX line on the bottom indicator shows a strong trend, so all the momentum indicators get thrown out the window and the Moving Averages take precedence. I can’t even bear to glance at those. Guess I collect my dividend in October and hold for a while. Might come time soon to seriously consider a stop-loss.

Gold Fever! AUY Buy

GOLD FEVER! My gold miner AUY didn’t take too well to Wednesday’s FED announcement, but it wasn’t that bad, only down 2%, so I scraped up some cash with one last tech stock sale and bought more! The horizontal dark blue line on the price chart is my new, lower dollar cost average price. For the first time ever I only own two stocks, with AUY making up a whopping 63.5% of my holdings. Very dangerous to put so much money into one stock, but my middle name is Danger…right after my first name which is Dummy.

REFR (Research Frontiers) Sale

Sold all my REFR (Research Frontiers) stock today for an insignificant 2% profit in order to free up cash to buy more AUY. Chart starts at day of purchase, horizontal dark blue line indicates my buy price, and as you can see on the Williams%R indicator at bottom the price has hit overbought levels (green area) and so has probably temporarily peaked anyway.

Waiting On the FED

Well in a little over twelve hours the FED meeting should be over and I’ll find out if the price my gold miner stock AUY get helped or hurt by their decision. Investors are clearly waiting on the sidelines as Tuesday was another sideways trading day, making it six in a row with a lot of Doji and Spinning Top candlesticks indicating indecision.

Satisfying Sales

I love it when stocks I sell go down right afterwards. Here are three examples that I recently sold to free up cash for AUY. Each chart starts on the day I sold, and has a horizontal blue line which indicates my sell price.

OPXA (Opexa Therapeutics)

BORN (China New Borun)

ARTX (Arotech Inc.)

FED Could Hurt My AUY Trade

OH NO! The FED might ruin my AUY gold miner stock!

They meet on Wednesday, and if they decide to raise interest rates sooner it will hurt commodities, especially precious metals. Here’s the lowdown from the big shots:

"*The mere prospect of a climb in U.S. interest rates has lifted the dollar to multi-month highs, and it may rise further if the Fed confirms on Wednesday after its policy meeting that a rate hike may come sooner rather than later.

*This would be bad news for commodities, analysts and investors said, due to their strong negative correlation with the U.S. dollar.

*Precious metals may be the most susceptible, as gold prices in recent days have shown their strongest negative correlation with the dollar in two years, at over minus 0.94, indicating a nearly matching fall in gold as the dollar rises.

*Silver and platinum have also displayed strong negative correlations, suggesting the precious arena could suffer as a whole if the dollar gains.

*”Gold and silver are the most sensitive to dollar moves,” said Victor Thianpiriya, an analyst at ANZ Singapore. “The biggest concern for gold right now is the dollar strength. The markets are positioned for something that could be a little bit more hawkish (from the Fed). If that is confirmed, we will see some more dollar strength.”“

AUY Ranging.

I NAILED IT! I dollar cost averaged down to the bottom with AUY (Yamana Gold) and it has now leveled off. Chart starts at my purchase, and the horizontal blue line is my DCA cost. Notice that Volume is diminishing, and the two momentum indicators I’ve included, the RSI up top, and the Williams%R at bottom both show oversold (red) levels which means there are no sellers left. However the buyers haven’t begun to move back in yet, so the price ranges sideways on low Volume. This is an excellent opportunity to purchase more shares. Unfortunately for me I have no spare cash left.

AUY Bottoming?

SIDEWAYS IS GOOD! Sinking half of my entire stock account into AUY (Yamana Gold) was either pure guts and confidence, or stupid reckless lunacy. I literally have no cash left to dollar cost average down any longer, having resorted to it three times already. I bet the farm. It is therefore with some relief that today the price move was sideways rather than down. Chart starts at my first purchase, and blue line is my DCA price.

This looks like the first sign of bottoming out, but if AUY goes down further in the days ahead I have no choice but to just sit here and eat crow. RSI indicator at bottom is still solidly at oversold levels (red zone) which suggests the sellers are tapped out. Let’s hope so. If not, there is always that nice 2.79% yield to milk over time if I get caught in another bear trap. The next dividend payout is in October, and I got in before the 9/26 ex-dividend date. So if I can hold for just one month I’ll get a nice cash infusion from owning so much AUY.

Triple-Down On AUY (Yamana Gold)

Catch the falling knife! In stock trading parlance that means buying a stock’s shares as the price keeps falling…but you could cut your hand wide open if you fail! Because it’s so difficult, and because so many investors lose money trying to do it, is precisely why I’m determined to get good at it and make it my specialty. I’ve had mixed results this year.

Chart shows my three days purchases of AUY (Yamana Gold) with the horizontal blue line being my dollar cost average price of all three days combined. I bought roughly equal amounts at $7.78, $7.38, and $7.17. Today’s purchase was especially satisfying as I managed to buy at very near the day’s low, but I had to sell off three other stocks at losses to raise the cash. That’s it though. No more cash left, and no more stocks I dare sell. If it goes down even more I’ll just have to grit my teeth and ride it.

This chart is a one day chart with five minute interval candlesticks. I made my purchase at 3:00. Just look at what happened immediately afterwards. The price took off! What luck!

This last chart gives some perspective on the recent downtrend, again with my dollar cost average being the blue line.

AUY (Yamana Gold) now makes up almost half of my stock holdings. The other half is split between two tech stocks. If the price collapses I’m royally messed over. But even then I can hold a long time and collect a decent yield. Also this stock makes a nice hedge for my other holdings and pure equity 401(k) against a market downturn, as gold stocks tend to do well on bad macro economy news.