With $USO breaking out higher like I thought it would, where is the top?  Where does this rally stop?

I wrote about the looming $USO spike here:   https://www.optionmillionaires.com/2013/uso-oil-spike-coming/

The calls I highlighted there are up over 300%.

I think this rally has two possible points of interest to the upside and I think it will, in all likelihood, not get past the first.  $USO at higher prices is not good for the consumer, it is not good for the economy, and with rates rising, I can't see oil going much further to the upside without severe consequences for the economy.

Here are two charts I put together.  The first chart is from earlier this week and illustrates where I saw $USO headed short term.  The next chart represents where I see support and resistance going forward.   The dotted line is where I expect the rally for $USO to stop and the solid line is where $USO will head if all the stars align perfectly.

A war in the Middle East will spur panic buying.  When that subsides $USO will be below where it trades today.  But for now it offers a great opportunity.

I covered Campbells Soup Company Sunday night in the optionmillionaires.com week ahead live webinar. The video archive for the webinar can be found here:  https://www.optionmillionaires.com/forum/showthread.php/526-The-Week-Ahead-8-25-13   In it I stated that I thought $CPB was headed for a decline and I was looking to enter the out of the money PUT options. Since then the stock has fallen almost 5%. I think it may fall even further and that tomorrows earnings report will be the reason why. The stock is up some 40% since the start of 2013. Are there that many Cream of Mushroom cans flying off the shelves this year? The stock offers a nice 2.5% dividend yield, but as rates rise that will become a moot point.

I also recorded this chart video Monday before the market opened:  http://stks.co/tQ43

Here are some charts of $CPB. The stock has put in a double top. The recent volume indicates it is running out of buyers.  Any selling pressure will send the stock to support at the $42 level before coming to rest in the mid $30 level.

The PUT options for September are up over 100% since I brought the stock up at Sundays week ahead webinar. I will either enter into PUTS heading into the close today, or wait until the market opens tomorrow. The stock is down almost 5% since week alone, which is a big move for a stock like $CPB. I think the stock will see further declines into weeks end and beyond.  It's a bold call and one I could be wrong about.  I've been right for almost 5% this week, I think there are more profits to come for those trading for downside.

The number of Americans signing contracts to buy previously owned homes fell in July for the second consecutive month, the latest sign that higher mortgage rates are starting to drag down the housing recovery.
The National Association of Realtors Wednesday said its seasonally adjusted index for pending sales of existing homes fell 1.3% from a month earlier to a reading of 109.5 in July, a slightly bigger decline than the 1% drop forecast by economists. The July index was 6.7% higher than its level a year earlier.
Because of the way pending home sales are tallied--at the signing of a contract, rather than at the closing--they provide a more up-to-date reading on housing market conditions than some other indicators. July's data likely reflected the continued rise in mortgage rates.
According to data from Freddie Mac , the average 30-year fixed-rate mortgage rose 0.3 percentage point to 4.37% in July from June. As of last week, it stood at 4.58%, a two-year high.
Interest rates have been rising throughout the economy since the Federal Reserve signaled earlier this year it could start to rein in a bond-buying program designed to drive down rates and boost the economic recovery. Rising rates have prompted concerns that the central bank's pullback, which the Fed has indicated could begin as early as next month, could undercut a resurgent housing market.
Housing, along with consumer spending, has been one of the chief drivers of economic growth this year.
In a release, NAR chief economist Lawrence Yun said that high prices and low supplies of homes was also crimping sales in some parts of the country. "More homes clearly need to built in the West to relieve price pressure, or the region could soon face pronounced affordability problems," Mr. Yun said.
Some other recent housing data has also pointed to a softening housing sector. The closely watched S&P /Case-Shiller index tracking prices in 20 major U.S. cities rose 12.1% for the year ending in June, down from a gain of 12.2% for the year ending in May. The Commerce Department's reading of new home sales in July showed a 13.4% drop from June.
Still, most economists believe that steady job gains, mortgage rates that are low by historical standards and a shortage of homes available for sale should continue to fuel the housing sector's recovery.