Something a little different this weekend, a trade-by-trade run down of our Premium Service Option Portfolio. Blue Line Premium Service - Open Trades Note: A couple of these are well past a 50% trailing stop, but included here just in case a token position was kept and/or there is still time to rebound. TSLA This Year-to-date chart shows TSLA at a key resistance trendline that it is having trouble breaking above in a convincing manner. This is a warning that the suggested Wave 3 advance has in fact not kicked in yet and another test of the Wave 2 low can be expected. Once Wave 3 begins, it will be obvious and what we see on this chart is anything but obvious. Also once Wave 3 begins, there will be plenty of time to get on board what should be a very quick $100 advance. Keep a hard stop on calls at -50%, there will be more opportunities ahead once Wave 3 up begins in earnest. SQ This chart reflects a slight adjustment on where Wave 2 comes in, trying to make better sense of the price action of the past month. In the end, it won't matter so long as SQ is in a Wave 3 down to the previous support level in the mid $40's. If so, our puts, whether the Sep $65P or the more aggressive Sep $50P, will go up multi-fold each. I like trades that go our way right out of the gate, certainly beats those that don't. Bitcoin (BITO Calls) Speak of the devil, we took a 1/2 position in BITO calls when Bitcoin popped above $70K last week. Bitcoin has since slipped back into the high $60K which keeps us from adding any more BITO calls, It still takes a rally above $72K to trigger the second half of this trade. Since the wave count is forecasting $85K to $100K, there is plenty of room for the calls to run, if triggered. The Feb 12, 2024 Buy Signal on the chart above triggered a purchase of BITO calls that were closed out at expiration six weeks later at +615%. That is what we are looking for on this round, so if we $72K is taken out in the days ahead, that banging you hear will be me pounding on the table to Buy, Buy, Buy. Otherwise, hold that half position with a hard stop at Bitcoin < $63K, or 50% loss on the open call position Gold (GLD) Look at how similar GLD looks to Bitcoin. Both patterns suggest further consolidation in advance of new legs up. This is what happened to our calls since the Mar 1st Gold (GLD) Buy Signal: GLD trades since March 1st Although the three most recent positions were all stopped out pursuant to 50% trailing stops, two of the three reached triple digit returns before turning back down, meaning those two positions should have been closed out at close to +50% each. The first Mar 1st position expired on April 19th for a 615% gain. That leaves only one position still open, the second Mar 1st trade (exp Jun 21st). Expect new calls if and when Gold (GLD) starts a fresh leg up. Don't be surprised if Bitcoin kicks then in then as well. Looking Ahead The big picture is muddled for now, but if IWM breaks below 200 I'm back on the bearish bandwagon. The months ahead have potential for pre-election and geopolitical adverse events in terms of our financial markets. A stock market that is hard down while Gold, Silver and Bitcoin soar would be a perfect storm of option opportunities for a service like ours. I'm glad you are all here, new and long term subscribers alike, as I expect to make the coming trades certainly as profitable as the best of the best have been this year. One last chart: IWM The bearish implications of this chart ONLY come into effect if IWM breaks down below the two red rays drawn into the future. The first is at 201, the second at 195 and it will take a break below 200 to activate a bearish option strategy. Look for an afternoon update with further instructions any day next week that IWM drops to 200 or close to it. Absent that kind of downside action our focus next week will be on the trades set out above. Have a great holiday weekend! In the Summertime Allan PS: All email to me: apharris@mac.com
