Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

LEN and building sector uptrend swing trade and options trades are over.LEN is nowrelegated to a 2-trend day ( which we'll update on intraday charts, short the morning highs and recovery at the 20 ma (declining)Shortable at highs just like we used to do earlier this month. This strategy after today's weaker building report. The 45 calls held since 2/6 and 2/7 should be sold completey if you haven't already done so. 48 was the resistance, and we did not move up from there and might not for quite a while. We got a good gain in TOL, LEN and DHI this month but its time to go back to 2-trend day and itis recommended NOT TO HOLD THESE CALLS any longer. Stochastics are overbought and sloping downwards.


......I've often said that conditions, not charts, dictate stock movements. Recently, that tenet has been demonstrated in the homebuilding stocks.

During the latter part of 2003, the trend in this sector had been upward. However, many of these stocks peaked and began to trade lower in early December, anticipating eventually higher interest rates. As all but the most ardent homebuilding bulls know, this sector is interest-rate sensitive and will tend to trade inversely to interest rates.

Reprinted courtesy of TheStreet.com


LEN, TOL and DHI February 6 (LEN 45 calls February purchased)

Fri Feb 6 15:17:55 2004: marketge Newest position is LEN calls which are heading for the HOD

Len feb 10



LEN breaks 45.40 yesterday's high might have more upside as well.

Len Feb 9 LEN heading higher after a long lower tail into 44.57, Dow and the S&P futures would have to be more positive and in an uptrend before LEN continues any upside.LEN should continue up.. still bullish on builders.

Feb 13


LEN might take out 47.40 here (yesterday's high) hopefully we might get to 48 before the weekend begins.

TOL above 41.50 for a run to 42.50