Here’s how I’m trading Lennar ($LEN) – March 2, 2021
LEN KHB MDC HOV PHM LEN
I want to look at Lennar ( NYSE: LEN ) here. This stock had been in a pretty tight channel here between 80.00 and kind of the low 70.00s. It broke out here in January and you can see it’s done, essentially, like a complete retracement after the 80.00 breakout up to 95.00 and then it’s back here.
This is, in my view, a pretty good buying opportunity because it gives you the ability to get the stock rebounding off of the 50 and you have only got to give it about 5-5.5 percent room on the downside. So if the stock fell to 79.00, just be arbitrary here, 80.00, that’s $0.20 below $80.00, if it fell back here then you’re out because it’s printing a new low and that’s not what you are looking for. You can go ahead and buy this stock here. They report earnings in 16-days, on March 18th, that’s the day after Saint “Fitzpatrick’s” Day. and so I would be buying this stock here.
If you look at the Homebuilders ( NYSEARCA: XHB ), the ETF, it’s working pretty well. You look at other stocks here, M.D.C. ( NYSE: MDC ) is working, of course, Hovnanian ( NYSE: HOV ) had a big number today so the stock is up. They are all actually doing pretty well. Pulte Home ( NYSE: PHM ) looks a lot like Lennar ( NYSE: LEN ).
I would be buying Lennar ( NYSE: LEN ) right now and then just look for a couple of weeks of really nice move, and then go from there.
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