High Yield ETF Covered Calls as of July 13th 2007

I’m amazed.  FXI (China) is still rocketing up past the stratosphere and onto the moon.  I’ve seen this go from $50s a year ago to nearly $150 today.  It’s just too hot for my taste and my gut is telling me it’s going to explode somewhere in empty vacuum of space.  I’m worried about the other suspects too as they’ve been too good for too long: GDX, USO, OIH and XLE.  Everyone is talking about energy (co-workers, friends, family, etc) so that’s usually a signal for me to get out as fast as I can.  I’ve got one more week until my USO calls get called/expire.  Based on USO’s price of $54, I’ll likely get called and keep the $1300 I made a few weeks ago.  I’m not sure where to go from here.  These returns during this time frame are too scary.   I may buy heavily into DXD (double inverse Dow) as I expect the Dow to plunge back down after it surpasses 14,000 but that’s just my opinion.  Nothing makes sense right now.  Oil is climbing towards 80 and the Dow climbs toward 14k even as the US Dollars hits low against the Euro and other world currencies.   This is defying all logic and cash may be the best bet.   I’ll post a follow up next week.
Here’s the report and exercise some caution….

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