Current Hotline

Betting on the Booming Housing Sector

This week’s Momentum Trader Alert recommendation in the red-hot housing sector is Lennar Corporation (LEN).

Founded in 1954 and based in Miami, Florida, Lennar Corporation is the leading builder of quality new homes under the Lennar brand name. Lennar’s Financial Services segment provides mortgage financing, title insurance and closing services for both buyers of the company’s homes and others.

Under the Lennar Family of Builders banner, the company includes the following brand names: Lennar Homes, U.S. Home, Greystone Homes and Village Builders.

Lennar Corporation (LEN) versus the S&P 500 over the past Six Months

Momentum Trader Alert Analysis

Recommendation

Buy Lennar Corporation (LEN) at market today and place a 10% trailing stop.

Portfolio Update

Public Service Enterprise Group (PEG) stopped out on Jan. 4 at $48.00 at a loss.

Important Note

Finally, I am pursuing new opportunities, and this will be the last issue of Momentum Trader Alert. Your publisher, Eagle Financial Publications, will update you with further information about how your subscription will be fulfilled. To protect your remaining positions but still benefit from additional share-price appreciation, I recommend that you set a 10% trailing stop on all positions, except for the following four:
Cigna Corp. (CI) — currently 4.70% above its stop price;
Verisign (VRSN) — currently 8.83% above its stop price;
Texas Instruments (TXN) — currently 4.86% above its stop price; and
Diageo plc (DEO) — currently 3.40% above its stop price

Remember that any related options positions should be sold once a stock hits or falls below its stop price.

Sincerely,

Nicholas Vardy

Nicholas A. Vardy

Current Recommendations

StockTickerBuy DateBuy Price$Current Price$Total ReturnStop Price$Comments
Lennar CorporationLENJan 8, 201867.5167.17-0.50%10% trailing stopNo options strategy at this time.
Diageo plcDEOJan 2, 2018147.06144.67-1.63%140.00DEO April 2018 $145 calls.
CVR Energy Inc.CVIDec 18, 201735.8239.22+9.49%10% trailing stopCVR March $35 calls
World Wrestling Federation Entertainment Inc.WWEDec 11, 201730.2931.32+3.40%10% trailing stopWWE April $230 calls.
Hilton Worldwide Holdings, Inc.HLTNov 27, 201775.7680.39+6.11%10% trailing stopHLT April $75 calls.
Tyson FoodsTSNNov 20, 201777.9781.52+4.55%10% trailing stopNo options strategy at this time.
Universal Display CorporationOLEDNov 13, 2017175.95191.68+8.94%10% trailing stopNo options strategy at this time.
Cognex CorporationCGNXNov 6, 201766.4567.84+2.23%10% trailing stopCGNX February 2018 $135 calls. (sold 1/2 for a 59.37% gain)
American Express CompanyAXPOct 30, 201795.73100.58+5.07%10% trailing stopNo options strategy at this time.
Texas Instruments, Inc.TXNOct 16, 201794.21109.62+16.36%103.65No options strategy at this time.
Verisign, Inc.VRSNOct 9, 2017110.06113.88+3.47%103.00VRSN January $110 calls. (sold 1/2 for a 62.10% gain)
Amphenol CorporationAPHOct 2, 201784.7589.78+5.94%10% trailing stopAPH January $85 calls. (sold 1/2 for a 58.97% gain)
Honeywell International Inc.HONSep 25, 2017141.75154.63+9.09%10% trailing stopNo options strategy at this time.
Live Nation Entertainment, Inc.LYVSep 18, 201742.0942.86+1.83%10% trailing stopLYV Jan. 2018 $42.00 calls. (sold 1/2 for a 70.21% gain)
Abbott LaboratoriesABTSep 11, 201752.3558.60+11.94%10% trailing stopNo options strategy at this time.
Cigna CorporationCISep 5, 2017182.20208.51+14.44%200.50No options strategy at this time.
The Raytheon CompanyRTNAug 14, 2017179.99191.68+6.49%10% trailing stopRTN February $185 calls.