Here’s your trade on Lennar ($LEN) – August 21, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to look at Lennar ( NYSE: LEN ) today, well, a few of the Homebuilders, but I really like Lennar ( NYSE: LEN ).
If you look at the weekly chart you can see that it had a pretty significant pullback, not a huge one, it shouldn’t have shaken any longer-term holders out. It has kept a pretty solid uptrend with these higher lows and I really, really like the way this is clustering right here within the channel.
I’m looking for this move higher, earnings aren’t an issue, they’ll be in about three weeks, maybe four weeks, about three weeks from today. One of the reasons why I like this is, look at the Homebuilders ( NYSEARCA: XHB ), very, very close to an all-time high, I think it’s an all-time high. When you go back that far it might as well be an all-time high.
And then also, the Dow Jones Construction Index ( INDEXDJX: DJUSHB ) is essentially at an all-time high, so we’ve got money coming into the ‘homies’. Our economy is not doing that well. The BLS came out today and basically said, Well our numbers weren’t BLS, they were BS, but oops, our bad. So maybe our economy is not that strong.
However, the charts will tell us whether we should care, and we really don’t right now. It looks to me like rates are going to come down. Powell is probably going to say something pretty dovish on Friday. Hopefully, the Fed will cut in September, I sure hope they do. I’m getting tired of people talking about it for years, that they’re going to cut, they’re going to cut, they’re going to cut. I mean, at some point can we just do it? Hopefully, that will get done.
Again, it looks like the tenure is giving us those signals. But again, if we look at the ‘homies’, they’re really benefiting from this. And so Lennar ( NYSE: LEN ) I think should be breaking out higher here. If we look at Pulte ( NYSE: PHM ), we see Pulte Home ( NYSE: PHM ) is also very close to an all-time high.
How about Toll Brothers ( NYSE: TOL )? Lo and behold the same thing. We can continue to get this chippy chip here for a while along this trend. But one of our venerated members, who’s posting in the Forum or Trading Room all the time, DeBeers, has been on this for quite a while here.
All of these Homebuilders are things that I really like. I think you can make some money on them. So check out Toll ( NYSE: TOL ), and check out Lennar ( NYSE: LEN ), check out Pulte ( NYSE: PHM ). I’m sure there are others too, I can crank them all right here, D.R. Horton ( NYSE: DHI ) is at an all-time high.
These are the stocks that you want to be in because guess what, they’re not having to prove themselves, they’re already proven winners. And the cool thing about stocks that make all-time highs, they tend to keep making them. It’s a little bit like Lay’s Potato Chips, you can’t just eat one, they keep going up. You want to be going in this direction, I hope this works for you.
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