1:10pm (EST) The market got off to a good start after the Labor Department reported the number of newly laid off workers seeking unemployment benefits fell for a third week in a row. Initial claims for unemployment insurance fell by 21,000 last week to 530,000, which was better than the 550,000 Wall Street had expected. The upward momentum was lost once the housing numbers came out at 10am.  The National Association of Realtors spoiled the party when they reported existing home sales declined 2.7% in August compared to a 7.2% pop in July.  That took the wind out of the bull’s sails as they had been expecting a fifth straight increase. I had mentioned that yesterday’s afternoon sell-off wasn’t a good sign and we will have to watch for that today.  With earnings season right around the corner, it seems we could have a battle for position as both the bulls and bears try and get an early jump. The negative bias today has taken us out a few of our trades.  But not before we booked our profits.  There is one trade I like right now and I have been waiting for the breakdown in the stock before recommending a put option trade.  Subscribers, check the Members Area for the update. Rick@MomentumOptionsTrading.com]]>