$SPY opening flat after starts at building sites for homes fell 8.5 percent last month to a 890,000-unit annual rate. But still the permits for future home construction rose to a 925,000-unit rate, the quickest since June 2008.

The housing market seems to be picking up again, but people are not going crazy on the prices anymore. They are still paying up, but not crazy prices just before the house market went bust.

The $SPY keeps making new highs everyday and like I mentioned a couple of weeks ago that it is just plain stupid to fight the trend. There are still lots of short opportunities during the day, but the best thing is to be cautious, and to not hold any shorts overnight, since they can literally blow on your face the next day.

One thing I have noticed lately, is that most of the rally is being now driven by the Russel 2000 $RUT. Which makes up for all the small cap stocks. Meaning that for the past 2 weeks the rally is mostly being fulled by small caps, and not blue chips names. So I hope that this is not going unnoticed by my readers. Specially the new readers who are probably new to the game. I still believe we go higher, but when the top eventually comes in, I hope you are not holding anything on the wrong side of the trade.

The $SPY 151.47 level is slowly drifting away, but that is still what I am focusing on.

$SPY 1st support is 152.84, 2nd support 152.35 and 3rd is 151.71.

$SPY 1st target is 153.60, 2nd is 154.46, 3rd is 155.24, and 4th one just for fun is 155.55.

Trade what you see not what you think.

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