timwest
Short

DOUBLE-TOP for LENNAR (LEN)

BATS:LEN   LENNAR CORP
431 11 2
It looks like it is time to clean the decks on this stock and test the longs with a good old fashioned sell off. This latest overall market strength didn't include the home builders and therefore is a crack in the bull market, or at least just a rotation out of the leaders as folks re-balance their portfolios at quarter end and lighten up on some of the big winners.

It's time to put these on your short-candidate list and short them.

The regression channel has been violated and retested and has fallen back out of it again. 41-42 is very heavy resistance so my stop would be just above that zone. A break UNDER $34 is a good target. $39.73 last.

Technical Tim
4:01PM EST
Tuesday April 9, 2013
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
snapshot


Can't find much positive here
Reply
timwest PRO QuantitativeExhaustion
3 years ago
Nice charts JR. Thanks.
Reply
timwest PRO
3 years ago
This one is working nicely. It could bounce a bit after expiration (today's options expiration) but stay the course. Lower stop to entry.
Reply
Looks like a Triple Top
Reply
timwest PRO QuantitativeExhaustion
3 years ago
It's been forming a nice pattern - I keep an eye on HD to see when these stocks really break to the downside. This rally in home builders and home builder supply stocks is due for a test. I am dubious. The rally in home prices is more of a dead-cat bounce than a new bull market.
Reply
I agree. Will look into Home Depot HD and Lowes L. Looks like Lennar has hit the base of the support of a Triple Top (if it is a TT).
Reply
timwest PRO QuantitativeExhaustion
3 years ago
If you take a look at the price of Lumber futures (LBU2013), you will see the implosion that happened there already. I think that is a leading indicator.
Reply
You ain't kidding. Also yields on 10 years rising as well. 1/3 of all homes purchased this year are investors not retail home buyers. This is the consequence of the giant government hand that invades our lives. Unaffordable homes for new home buyers and young couples that want to start a family. The fed is not the friend of average Dick and Jane on Main Street.

snapshot
Reply
timwest PRO
3 years ago
I just re-read my comments that a "BREAK UNDER $34 is a good target." That happened the other day and today's lift may just be the sign that this trade is over. Closing out this idea.
Reply
Nice job. I think you can get upper 20's next week
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out