I dumped all my October SPY calls bought earlier this week, throughout the day with the last 5% batch out about 10 minutes ago near S&P 1066. Probably should of waited til the traditional post 3:30 PM ramp into the close, but it's been a good enough run for me.

I will consider rebuying on any move over S&P 1070 in the coming days, as in the larger sense the resistance between 1050 and 1100 is almost nonexistent - but we are at the top end of our channel.

Either way buying the double top breakout wins again, big time. Mid July it was the double top at S&P 950, and last week S&P 1040.

I also dropped some of my Meritage Homes (MHS) exposure.

I've evaluated quite a few shorts this afternoon, my favorite ideas however all have around 100-150K of daily volume so a bit hard for me to move in and out of. Most likely I'll just buy some October SPY puts recreating what I am doing on the call side when the time comes.


Speaking of homes... on the good news front Reuters reports the White House is considering economic subsidization plan # 21,937. No surprise here - we've been calling for an expansion of the first time home buyer program from $8000 to that select group to $15,000 to all. The housing lobby is for it, the politicians are for it, and apparently most Americans are happy to receive free money without asking where it comes from.

That's a win-win-win. As long as you are not someone who has to eventually pay for it. I am just wondering at what point *those* Americans will call their local representative and say enough is enough. Notwithstanding, I am sure the evaluation will go well, and the vote with be yes for more subsidization of the economy at any cost.

WASHINGTON (Reuters) - White House economic advisers are looking at the $8,000 tax credit for first-time home buyers and will make a recommendation to President Barack Obama as he decides whether to extend it, White House spokesman Robert Gibbs said on Wednesday.

The White House economic team is looking at the tax credit and evaluating the impact that it has had on home sales, and through that evaluation will have something to give the president, Gibbs said.

The tax credit program is to close at the end of November.