"Wall Street Elite"

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courtesy of:
http://oakshirefinancial.com/2011/08/29/media-sells-soap-pulte-homes-nysephm-comes-clean/?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+oakshire+%28Oakshire+Financial%29

"All of which brings us to our trade recommendation for the week.

The entire homebuilding group got kicked in the androids this month and is still spinning through the iPod. The SPDR S&P Homebuilders ETF (NYSE:XHB) fell 30% from its top in May, and individual issues, like Pulte Homes (NYSE:PHM) fell over 50% just this month.


Here’s Pulte:


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Intrigued?

We are. We say the selloff was wildly overdone and RSI readings confirm that. Even during the bear market of 2008 Pulte never saw an RSI dip below the 20 line.

We also like the mortgage bailout story and apparently so did the market. Pulte moved higher by 30% since bottoming last week, along with a few other big names in the sector. Pulte has also seen some 50,000 shares purchased by insiders in the last six months. We’re betting more will show up imminently.

Wall Street Elite recommends a speculative purchase of Pulte Homes April 2012 $6 CALLS, now trading at $0.46."
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