Can’t Believe I’m Doing This..
September 28th, 2005 by BWV
Wildman Jim Cramer has been panning homebuilder stocks Lennar (LEN) & Toll Bros (TOL) recently.. and his calls have been generally right on these stocks during their monster multi-year run.
Now, with his show Mad Money, Cramer somehow has enough followers so that the stocks he picks & pans move simply because of his mention. It’s unbelieveable to me, and I’ll post some egregious examples during some downtime today.
Further, the homebuilders have been crushing the “housing bubble” short sellers for so long, I wonder how many are left? I’m sure there are still plenty, but not like in 2004.
Because of the massive downside volume last week, and following the little bounce to the underside of the 200 day moving avg (blue line), I just “followed” Cramer and took a short position in Lennar (LEN) at $56.75. I’m 90 cents in the money already, and am hoping that it becomes another example of the best trades being those that go in one’s favor immediately .
Short LEN
schew.. glad i closed out this loser position for a minimal loss last week. LEN is up in the low 60’s now after raising its dividend and being added to the S&P index. those items are just lethal for short positions.