Learn the trade here. Make it on tradeMONSTER

Options Trading News

June 26, 2013  Wed 8:14 AM CT

LEN: SEE CHART GET CHAIN FIND STRATEGIES
So we can handle a slight rate rise. We are willing to buy stocks that can go higher in an environment where China's not blowing up and Brazil seems momentarily tame.

Needless to say, we still won't buy stocks that look like bonds unless they are very oversold, and we certainly won't buy stocks of companies that are affected by higher mortgage rates, even if they tell us all is well, as Lennar did yesterday.

It's crazy, but yesterday we saw the relief rally that we should have had on Monday but couldn't, in large part because I think that China's ruling all of the industrial action and we got a reversal there. I also think that the banks are now able to act better because we have already forgotten that raft of regulatory nightmare stories about banks over the weekend.

TheStreet.com logoMeanwhile, we never lost aerospace and we got the rails back because President Obama didn't rage against coal as we thought he would. And a lot of the best shorts, including the master limited partnerships, have rallied because the president didn't attack them, either--though I suspect there has to be another raid on that group because it hasn't put together two good days in ages.

Oh, and good consumer confidence numbers now seem to apply only to retailers, not homebuilders, as they were soaring and look to rebound strongly--at least until we see weekly employment claims tomorrow.

Disclosures: Cramer's charitable trust has no positions in the stocks mentioned.
Share this article with your friends


Related Stories

LEN

Is housing finally coming back to life?

October 20, 2014

After a year of grinding sideways, the housing sector is showing signs of life with bullish activity in such companies as builders, suppliers, and lenders.

LEN

Big Lennar trader stays constructive

October 13, 2014

The homebuilder gapped higher on a strong earnings report and is down just 3 percent in the last month, much better than the average decline of 13 percent in the industry group.

LEN

Homebuilder bulls keep hope alive

September 30, 2014

Homebuilders have struggled, but the bulls aren't giving up hope. Today they are snapping up calls in Lennar and Meritage.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Analyzing a bipolar market

Economics hinges on the tenet that people, including investors and traders, act rationally and in their own best interests. But...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER