short biggest home builder in late stage economic cycle.
Lennar corp is becoming a short candidate since it seems like the FED will continue raising rates in 2019 and home building stats are proving to be sluggish as well. Home prices have peaked and consumers will need to tighten their belts in USA in the months to come,(1st quarter)after holiday season.
Technically, the price has been showing a consensus of uncentainty with most recently a major upside of selling volume.
I will be looking for a price entry when the baseline support gets penetrated on a 2nd,3rd or 4th attempt to the down side.
Be aware that if FED Powell decides to opt for a dovish tone on December 19th and keep the interest rate at 2.25%, the stock might get a little momentum on the long side for a short period of time.
Overall, I do believe that the economic fundamentals will weight significantly on that homebuilding sector due the fact that credit will be contracting more in the months to come.
Technically, the price has been showing a consensus of uncentainty with most recently a major upside of selling volume.
I will be looking for a price entry when the baseline support gets penetrated on a 2nd,3rd or 4th attempt to the down side.
Be aware that if FED Powell decides to opt for a dovish tone on December 19th and keep the interest rate at 2.25%, the stock might get a little momentum on the long side for a short period of time.
Overall, I do believe that the economic fundamentals will weight significantly on that homebuilding sector due the fact that credit will be contracting more in the months to come.
Trade active:
hold the short