Time to buy housing stocks
Few people paid attention, but yesterday the ITB dropped below 16, meeting floridabuilder's condition for buying. So I jumped at the opportunity and bought some KBH and PHM. As I told you many times, my strategy was to accumulate builders gradually over the year and then keep them locked in a safe for the next 2 years, so I couldn't buy a full position yesterday, but I made my position complete by buying the last remaining shares that I wanted. On a positive note, last week's housing panic allowed to me to close almost all my covered calls at a profit, so the upside potential is now unconstrained, though I might sell some calls again when floridabuilder tells us to go short.