Bookkeeping: Cutting Lennar (LEN)

I see so many charts that are identical to Lennar (LEN) - a broken down stock that has "reverted to a mean" - jumping from $6 to $10 in just over a week. (Remember - along with giving every American a solar panel, Obama will also give them a house - or so the stocks have been saying)

I am cutting almost all of our position and taking it from 1.4% stake to 0.1%. If I could, I'd be short Lennar here from the $9.50s where I sold. (stop loss over $10.10) This chart screams "short me". The problem is I see almost every chart looks very similar to this - which means most stocks in the market (who share this chart) are all screaming the same thing. Hence, why I find it hard to be bullish or allocate a lot of capital to the long side. To change our tune we'd need to see these resistance levels breached to the upside. (along with some leadership to emerge, along with the casino mentality to stop, along with stocks within sectors to not all be treated the exact same) Until then, we assume the pattern continues - i.e. failure and falling back down. At some point in the next year or two following the pattern will be wrong - but that's ok - you follow the pattern until you are proven wrong.

Long Lennar in fund; no personal position