ChartSmarter Wednesday Game Plan 11/12/14

Markets for the second consecutive day bided their time and recorded small advances. The Nasdaq rose .2% and the S&P 500 by .1% and both went out on highs for the session. The Nasdaq seems to have regained some stamina by taking a breather the last 7 trading days, before poking its head above the 4650 level Tuesday. Volume however was lackluster due to the holiday. A big shout out to any veterans. You are ALL heroes in my eyes. We continue to keep a very close eye on the homebuilders. The group has been slow to join the larger, broad equity move that has been underway for sometime, but thats seems to be changing. There have been a few breakouts in the group, among them one of the better performing LEN. Here is how we examined the stock in last Wednesday’s Game Plan. Stocks that can be taken out as they take out bullish ascending triangle patterns are LEN. LEN was profiled recently in Mondays 10/20 Game Plan with a double bottom trigger of 42.77, and that pivot was taken out that day gaining 3.6% on very good volume. It has traded very tight as of late, a good sign. The stock is up 8% YTD and by 22% over the last one year period. LEN’s last earnings report was on 9/17 which saw the stock gap up 5.8%, recouping its 200 day SMA. On 12/18/13 it sprinted higher by 6.3% and sandwiched in between were two small losses of .5 and 2.5% on 6/26 and 3/20. LEN has been at the mid 44 level 3 times as of late with last week, and back to the weeks ending 5/24/13 and 2/28/14 creating a nice ascending triangle pattern. Lets look to enter with a buy stop above at 44.50.