Friday's USO Calls

Friday I entered some USO July 34 Calls the position was based not only on our Euro/$USD analysis, but also the USO charts themselves...

The Calls were entered toward the close and are now up 9.15%. Other short term options positions that are doing well include AAPLJuly 560 Calls +22%; AAPL June 540 Calls +105% -i'll be looking to sell these on a pullback and roll them over to July; AAPL June 570 -31%; PCLN July 655 Calls +8.38 % and then there are the speculative longs in the equities portfolio-Long: TNA +11.5%; ERX +10.5%; TYH -4.13% and FAS -5.46 %.

The core short positions I'm looking to add to on strength in the equities portfolio include: BIDU +16.5%, PCLN +13.24%; CAT +13.2%; AAPL +6.54%; BEAV +3.99% and XOM +3.95%.

These are the core short positions we've been building since March (some of them any way), as mentioned, I expect draw down in them and will continue to hold them and when the time is right, add to them. The speculative longs were used to generate some extra $$$ and hedge the core shorts.

Back to USO, obviously USO benefits from $USD weakness which is something we've seen in 3C as well as Euro strength confirmation,

 UUP/$USD 30 min 3C negative leading divergence.

 FXE/Euro 30 min leading positive divergence-both charts confirm and should be supportive of the market and USO.

 USO hasn't confirmed this morning on the short term charts, I'm not too concerned about it though as the longer term charts take precedence.

 15 min large leading positive divergence

60 min large leading positive divergence.  I suspect the Iranian news also will be helpful for oil prices in the near term.