This past week saw four important updates and resulted in four new options in our Premium Service. With the Active Options Portfolio now built back up to a respectable number of active trades, patience is the key in allow them to unfold as intended. Meanwhile, the July 7th entry into August USO calls has brought the entire active group up to an astounding average return of +85% per trade. As a stand alone winner, it closed the week +703.40% having been as high as +942.55%, pushing the trailing stop exit now up to a remarkable, +471.28%. If hit, you know what to do (hint: take most off, leave a little, "just in case"). There is reason to believe that further price appreciation is likely, in both energy and precious metals. Below is an excerpt touching on the geopolitical front, from James Rickards' Strategic Intelligence Report, that went out on Friday: "The best estimate is that the current bombardment of Iran is what’s called 'conditioning the battlespace'. That means the U.S. is preparing for a much larger military operation, and current attacks are meant to shape the situation in its favor. "The coming operation could be the physical removal of Iran’s HEU. That would require division-sized boots on the ground, about 10,000 troops, to establish a security perimeter, along with the Army Corps of Engineers, Special Operations Command forces, air support, satellite intelligence and every other asset the U.S. can muster to allow the removal while fending off counterattacks and disarming booby traps. Casualties would be high. "The second possibility is the use of hypersonic missiles or tactical nuclear weapons to destroy the HEU, or make it impossible to retrieve once and for all. "Either of those efforts would be unprecedented and high risk. The blowback would be incalculable. But they are the only ways for Trump to avoid a forever war in Iran. "Investors should reallocate their portfolios accordingly. That means fewer equities, with more weight allocated to the defense and energy sectors. It also means holding more cash, more gold, silver and income-producing real estate." In other words, this past week's entries into calls in XLE and GLD, long with the existing calls in USO, could be well timed vis a vis geopolitical events yet to unfold. What effect all of the above may have on our QQQ puts, also bought in early July, is yet to be seen. They were deep in a hole a week ago, but never were stopped out and finished the week at about break-even. Charts suggest more downside to come. Speaking of which: CHARTS QQQ 2-Day Breakdown below multi-month trendline support as of Friday's close, following a Wave V Sell Signal late in the week. USO 2-Day One trendline breakout away from targeting $165 to $225 and on the heels of a very profitable Wave 5 Buy Signal. GDX 2-Day We've seen this pattern in Gold and Silver, now making an appearance in the Gold & Silver Miners ETF. The Wave 3 High as $117, so buying the Sep $80C here looks like the least we can do next week, assuming any kind of price strength. High last week was $77.99, close Friday was at $75.25: Buy calls on any GDX move above $78.00. GDX Sep Calls If triggered, the highlighted strike @ $80 will be monitored in the Active Options table, but any strike shown above would be suitable for what could be an eight week trade. Active Options PRO Service Premium Service
