Picking Tops. Not Bottoms.

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U.S. equities are facing a key confluence of resistance, putting buyers to the test.

Earlier this month, we bet on Homebuilders holding their ground within a potential topping pattern, but the bulls couldn’t get it done.

We already sold the double on our PHM calls, and now we want to take a shot at this group from the short side.

So, let’s flip the script and see if the bears can get it done now. 

This is a massive distribution pattern. If it completes, the reaction leg lower could be fierce.

We’re buying the $ITB 4/17 $94.51 puts for approximately $1.40 per contract.