Here’s another look at my one homebuilder short, Lennar (LEN). As you can see from the tints, my hope for this is for it to re-enact its behavior during the financial crisis. Its topping pattern is just as good, if not better, than what we witnessed those many years ago.
One aspect that is helping is that interest rates, which looked like they were going to take a hard fall, have pushed above their reversal pattern and are showing real strength, which is going to diminish demand for the stuff Lennar is hacking together.
