In the endless search for yield, a Covered-Call Strategy can be an effective tool to supplement portfolio performance. In addition to finding returns from call premium, I'll try to incorporate higher quality dividend stocks for a little something extra. The guidelines for the covered-call strategy are:

• Generate more than 7% per year from the calls and dividends combined is the overall goal.
• Call should be at least 8% out of the money, to avoid being called away.
• Targeted expirations will be within 4 months. Optimally calls will be written on the same underlying 3-4 times per year.
• Buying back calls to close before expirations takes place will be taken into account; Yields are calculated Bid-$0.05.

The picks should be looked upon as yield generators to supplement longer-term equity holdings. The above are only guidelines, however, not rules. Before utilizing the strategy, make sure to study it and know the potential

The trends in the AUDUSD, USDCAD and oil, which began in October 2011, seem to be at a crossroad. The USD appears to have position to break the trend and strengthen against the commodity related currencies and oil. I also think oil's behavior of failing to press back higher through the broken 3 year trend in Chart 3 is interesting. It's possible that the bullish trend is broken, particularly in the short-term.

Chart 1 (blue line = parity)
1 AUD would buy less US Dollar -> US Dollar strengthens

The Aussie economy is tied heavily to China through commodity trade. As the Chinese economy slows, or at least isn't accelerating as fast, the Aussie will weaken. In the above chart, the price action is carrying momentum down through the trend line, signifying USD appreciation.

Chart 2 (blue line = parity)
1 USD would buy more CAD -> US Dollar strengthens

Surprise, the super committee is reportedly set to admit defeat this week, according to a Bloomberg article. The group which was assembled to explore and enact ways to cut spending and raise revenue has essentially been a waste of time. The politicians that made up the group have not been able to meet in the middle for the better, with the most likely roadblocks being Bush tax cut issues and Medicare.

Equity markets have been reacting violently to headlines and currently feel top heavy to most traders and analysts. The news that the super committee has failed is not a shock to most, but the fallout and string of events may ignite a push lower in equities.

The failure to come to an agreement means the U.S. Congress is still unable to effectively do its job. The country, and world economy due to globalization, is dependent on U.S. legislation

The VIX has skyrocketed over the last week, streaking higher by as much as 50% in one day. Today, Wednesday the 10th, the Fear Index closed at 42.99. About a month ago I wrote an article which basically stated that it was time to buy the VIX amid the impending global economic problems. I am now ready to switch, and begin to look at strategies to play the index on its inevitable return lower. The index has proven over the years that it cannot stay at hugely elevated levels for very long, maybe only a few days, before it comes crashing down.

The catalysts we may see for a turn-around are many. Equities will simply become too cheap not to own at some point, and buyers will return. Another, just as likely, scenario is the Fed announces plans for QE3 or other stimulus which will prop up equities yet

Regardless of what certain pundits and investors say, gold still has room to run. Below are some of the reasons I believe GLD and gold will have a great run into the end of 2011.

The European debt crisis is far from over and the U.S. Dollar is not very appetizing. Italy, which holds monstrous amounts of debt compared to Greece, seems like it is ready to take the spotlight (and their notoriously corrupt government will be much harder to deal with). The Euro will get smashed when the EU can no longer delay dealing with its problems. Over the last year, when the Euro became unattractive, money has tended to travel to the USD. However, the U.S. is dealing with debt problems of its own. The U.S. Congress has no real plans on how to deal with it. They are still trying to schedule meetings to make plans to

The market is volatile due to economic numbers that are extremely unpredictable. The S&P 500 has shot up and down over the last two months, touching its 200 day MA and then recovering nearly to new highs. However, the VIX, a gauge of the cost of insurance, is presently near lows. With the latest disappointing jobs numbers on Friday, July 8th, it seems like a great time to buy some calls.

Historically, the VIX averages 18.5. It has shown weakness in its last two major down moves by reaching as far as 14.5. Obviously these lows are irrational exuberance from investors, because there has been no real fundamental positive changes in the world economy that can justify insurance costs being at post financial crisis lows. Unemployment numbers are jumping back and forth causing huge swings in equities.

The situation in Europe is not gone, not by a long shot. Greece's

It has become apparent that Goldman Sachs (GS) is losing its grip as the dominant bank on Wall Street. Just two years after solidifying itself at the top, by managing to profit mightily shorting mortgage-backed securities, Goldman's stock is falling. In recent trading days, the price of GS stock has hit one year lows of $128.30. The stock achieved its 52-week highs in mid January, reaching $175.34 and has declined roughly 35% since! So what is causing investors to pull their money? The weakness is a combination of the firm's legal troubles, new trading restrictions brought on by the Volcker Rule and the comparative weakness of its CEO, Lloyd Blankfein, among others.

Goldman is known to have extremely motivated employees who are willing to crush the competition. Unfortunately, the employees are also known to break the rules from time to time in order to win. Some of the more

The economic numbers over the last three weeks have been poor overall. The market seems willing to fall further and slide in to the summer months. I am not convinced the economy is heading into a double-dip scenario. I also believe the end of QE2 will help over the summer months. Let's take a look at what happened last year in the beginning of June. Below is a comparison of numbers released in late May and early June from 2010 and 2011.

Lowe's (LOW) broke cleanly below the 200 day moving average Wednesday, which was at $24.16, building on its bearish momentum. The home improvement giant has felt the heat of the housing slump and will continue to feel it into the summer. The company recently reported lower than expected earnings for the first quarter of 2011. In particular, net sales decreased 1.6%, however, management is forecasting a 4% increase in sales over the next quarter.

Strangely, management blamed the lower sales on high gasoline prices, which they say deterred customers from making the trip in, according to a report from the WSJ. Fittingly, management also cited the economic slump as a contributor for homeowners putting off renovations and more expensive home purchases. Following are some observations on this stock's technicals and fundamentals.

The housing recession is here to stay, at least for the duration of the summer. Case-Shiller