Housing Still Poor

Morning. Futures are pointing to a lower opening after housing starts fell 6.3% and building permits (an indicator of future construction) dropped 8.3%. All in all, we should come very close to testing the previous lows and a break below them would indicate a major fall for the markets. If you have any longs you are worried about, I would suggest tightening them up or buy some puts for protection. Others with index calls (like myself) should look for opportunities to build on your position. I had said earlier not to buy up everything yet because things could get worse. Well, here we are with poor economic data and another great opportunity to buy in at extremely low prices.

Oh yeah, options expire today which should make things VERY interesting.