In this monthly letter we will cover:
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- The Pandemic Time Out
- Portfolio Update
- Gold and Oil Outlook
Things are both locked up and booming at the same time. The lockup makes it difficult to find new things to speculate on, but the economic situation has been very friendly to our holdings, and setting up for an exciting second half of 2020.
Our primary goal right now should be patience. Keep a level head, take ROY profits, and let the rest ride. I think as the rest of 2020 unfolds there will be several mergers and acquisitions that will create new opportunities. Our job is to wait like ninjas, lurking in the shadows, keeping a sharp eye on what’s happening, then pounce. The last thing we want to do is jump at something that’s a crap shoot, we want real opportunities, not rumors and some pump and dump scheme.
Pandemic Time Out
The COVID-19 Pandemic has created a huge mess, but it appears as if the US investor believes we’ll make it through and regain our economic standing. Plenty of pundits don’t share this view, they think it’s only a matter of time when the whole house of cards comes tumbling down. Don’t listen to them. We’ll protect ourselves with our Dragon portfolio Long Volatility, Gold and Bonds allocations.
The NSADAQ has already hit all-time new highs, and there’s still 11.2% unemployment, worse than the great depression, but rapidly recovering. You’ll hear the pundits say there’s no V recovery, but I have no idea what the hell they’re talking about. If this is not a V recovery, then I don’t know what is.
The unemployment numbers for June, as well as the Employment Situation report startled everyone. The numbers blew expectations out of the water. This is sure to spark consumer confidence, as large portions of the country are executing their phased back to work programs. The only people not happy, are the Antifa and Black Lives Matters anarchists, some main stream fake news outlets and the Democrat Party. Most of them don’t contribute anything to the GDP, so…
Portfolio Update
Gold Standard Ventures (GSV) our first speculative play in this service is starting to break out, and it hasn’t even been the subject of a buy out yet. With our entry at 30 cents, and a current price approaching 90 cents, we are near a 200% return. Then there’s Artemis Gold that has blasted off with a moon shot in the past few days, up almost 100%. Do we really have to even cover our other plays?
Oh, okay, we will. Just remember that we have patience, and this pandemic has put the breaks on several areas of the economy, and manufacturing, which directly affects the delivery of oil through those pipelines. But it will come back soon enough and our play in Shel Pipeline Midstream (SHLX) should start paying dividends, literally. Shell pays a very healthy dividend, this is one of the reasons why I may take it off the speculative list and put it on the investment list. Also, considering the recent mild pullback, it may be a candidate for adding another tranche.
Enthusiastic Gaming Holdings (EGLX) is up only marginally since we added it to the list. About 20-25%. This is a growing industry, with lots of potential, so lets add an extra serving of patience with this as well. It does appear to be consolidating and ready to break out, but that’s just my wishing good things, don’t put money down on my giddiness.
What I’d really like to concentrate on in the coming months is establishing the Long Volatility positions as they get cheaper the higher the market rises. Good time to pick up cheap insurance. The 3D Options Course will be a big plus in understanding this strategy.
Gold Analysis
Gold is attempting to break out of the consolidation it has formed since April. As I’ve said many times, I don’t think that breakout will succeed unless it holds a position about 1750-1800 for at least a few weeks. If it fails, I see it dropping sharply, perhaps going as low as 1550 to maybe even 1450.
more to come…
Crude Oil Analysis
coming soon…
