Oil...SOLD USO, its run Over for now... WHERE to go from here? Rate Hike Related...

OIL
Oil has gone up primarily from the FED cutting rates. Couple that with Natural Disasters and crazy middle east stuff and you got an unusual supply demand thing going on... Today was an example when all those legs broke today... likely rate hike, hurricane will miss a supplier, and Iran/Israel talking agreement... bam! Oil down >$5 at one point.

Of course, Oil will still trend higher. but pressure on oil is greater. the natural disasters and middle east conflict can always send oil higher, but we may not find it on the nice reliable trend of late.

SOLD USO
Anyway, I sold my lone USO CALL @20% loss. Pretty much erased my profit from last week... yet, better to cut it than risk losing more. I missed that exit today with a 5% loss, but learned some stuff today. same goes for DIA puts (i am holding) i had a chance to bank some coin. would-ah, could-ah, should-ah. A profit is a profit... and the time i spent on all this is the bummer part of it. The Credit Crisis i thing though is upon us again and couple that with the FED raising rates and trouble looms...

I may buy USO again, it is just a matter of what is going on at the time... right now, nope...

INTEREST RATE HIKE...
If we are indeed set for an interest hike, imagine all those living it up on credit. Even the publishers clearing house sweepstakes spokesman guy (Ed), filed for bankrupcy, he was a mulitmillionaire! The US is filled with other people who are not poor yet are basically broke...

WHERE $ Might FLOW...
I think it is time to short real estate again. financials have been pounded to pieces already. it is back to real estate... SRS is an example of what is possible from here...


IYR chart on the other hand make you think this has bottomed...


But where is the actual the bottom?


So @313 pm EST, i bought IYR Sept58put@3.79...Rationale?
If we keep getting an interest rate increase (stem inflation), where are people going to get their loans to live? Is the ʻbankruptʻ government going to step in again? How about all those greedy banks/brokers/agents... all your homes will be worth"less"... "Less" in that you will have no one to sell them to and YOU are stuck like everyone else. Sure you will have more money than Joe Blow, but you will be buying food with him at 7 Eleven...

US DOLLAR...
So rate hike means stronger dollar... and yet the US Economy stinks. I dont know about trading $US versus other currencies. I will have to investigate that further...
By the way, i am all in for a stronger $US, i have a trip possibly coming up next year in Europe. I need a stronger $US in the worst way...