Two sectors are in huge uptrends
-Homebuilders and REITS are booming
2. -The financial sector (the slime boys) are screwing us again
The evidence here mounts that homebuilders/home construction may have finally bottomed. Real Estate shares also show solid increases from March. Both of these sectors have been part of the general uptrend, and we believe both are false facts. Homes are still being sold short, and 1 in 2 sold is in foreclosure. We also do not believe commercial real estate defaults are shown accurately within financials, and remain bullish on SRS, the real estate short fund.
Two types of trades can be made here: Long call traders could trade any at the money October issue on either of the above, for tight 20% profits. Contrarians could watch SRS with us. We're holding an October OTM issue now,losing money, and may soon be buying a more ITM long range SRS call (inverse to the 2X shorting fund) for what we we see will be one of the first fall offs in the market.
The financial sectors, best represented by XLF Financial Select Sector SPDR, we continue to watch for a put entry at market tops. This sector is also showing massive growth, and is soon time to short.
