We like the U.S. Crude Oil ETF (NYSEARCA:USO) in our SwingTrader subscriber service. Today, I have resourced a few articles on the Middle East that may help us understand if USO is a must-have for protection from anticipated world events.
Oh! Bama has given Tehran until the end of September to respond to Washington’s offer of diplomatic engagement. One of the main arrows in the President’s quiver is to apply sanctions to any foreign firm that exported refined fuels to Iran. Iran must import gasoline and diesel, by blocking these imports, the U.S. could apply pressure to Iran’s government, as gasoline supplies ran low. The bill that requires the president to apply sanctions is languishing in the Senate.
Pro-Israel lobby groups are pressuring congress and the White House to take action to prevent Iran from developing a nuclear weapon. “Obama clings to hope as Iran hawks Circle” offers insights to the lobbying effort. Venezuela agreed to supply refined fuels to Iran last week, throwing a wrench in our "sanctions." If you can compare foreign relations to investing, "Hope is not a strategy."
The International Atomic Energy Agency (IAEA) has documents that may authenticate Iran’s pursuit of nuclear weapons. These documents are from multiple countries and have been in the IAEA’s possession since early last spring. There are questions about their authenticity, but the IAEA seems to give weight to the validity of the documents. Asia Times has an article that will give you the background, “Crucial Iran nuclear evidence covered up.”
I wrote to our SwingTrader subscribers last week, when news of Israel Prime Minister Benjamin Netanyahu’s trip to Russia broke, that there was more to this trip than being reported. The U.S. is not as reliable an ally under the present administration, and Israel may be looking to cultivate relationships with Russia in case they attack Iran to take out the nuclear research facilities.
The last article from Asia Times is “Netanyahu plays a Russian rope trick.” This article states that “Bebi” presented concrete evidence to Russia that their arms were making it to Syria, Iran, and Hezbollah guerrillas in Lebanon. Israel also requested that Russia not sell S-300 anti-aircraft missiles to Iran. The underlying theme of the story is the lack of trust Israel now has in the U.S. as an ally. An interesting twist may be that by approaching Russia, Israel may pressure the U.S. to fish or cut bait.
I like owning crude oil when unrest is on the upswing in the Middle East. Owning USO helps me sleep at night.
Oh! Bama addressed an AFL-CIO convention in Ohio. It was similar to a revival. I was waiting for an Amen, but none were offered. Not one stutter, the teleprompter was flawless. One of the ladies may have fainted, but was held upright in the crowd as they pressed for a closer look. Health care legislation, trade protectionism and attacking capitalism were top of the list. Note to Rep. Joe Wilson, next time yell "Amen."
Am I the only one that wonders why these people are not at work? When I was on a school board, I never understood why meetings and seminars took place when school was in session. Another board member explained to me, “No one would go on Saturday.”
It looks like the market rally is intact. After a shaky day on Monday, the market feels like the sky is the limit. Is it? No, but let’s enjoy it while it lasts!
"In my many years I have come to a conclusion that one useless man is a shame, two is a law firm and three or more is a congress." ---John Adams
I apologize to the “one useless man.”
Disclosure: Long USO