The Long and Short of It

I mentioned LEN and a few other homebuilders as long setups of late. Lennar continues to bull flag up here with a $46.15 trigger to get another push higher. By the same token, while homebuilders have seen a resurgent bid of late the wildly-extended (longer-term) housing derivative retail plays, namely HD LOW, can be seen as short setups possibly for a pair trade. HD LOW have earnings this week. But barring anything too crazy, in terms of price moves, I am looking for them to come in as 2014 winds down. As you can see on their respective daily charts, both stocks appear to be breaking down from well-defined rising wedge patterns (highlighted). _______________________________________ _______________________________________