Fallen Angels Lennar and Allegiant Are Flying

This is not a market to buy breakouts (when a stock surges out of a base), because by the time you jump in, 80% of the move is over. So instead I've been buying fallen angels and then selling on any decent surges. Two of these names are homebuilder Lennar (LEN) and airline Allegiant Travel (ALGT) - the former is a 2.1% position and the latter 1.3%. I'm cutting Lennar's position size in half as the stock is up 11% to $6.80s and the Allegiant by about 75% as it hits $36.00.

No idea why Allegiant is (ahem) flying, but it has been an excellent trading stock of late - I buy in the $33s and sell north of $35, and have repeated small trades (1%ish) of this nature over and over... (and over). Lennar same idea of late - buying around $6, selling around $7 - keep repeating. I will replace these portions with buy orders at $6 and $33.50 respectively.

Allegiant has a new management presentation out here filed with SEC ...

As for the market, a nice little surge yesterday morning but until/unless we get north of S&P 800 I'll consider this some short covering and not much more. We were WAY overdue for a bounce of some sort.

Disclosure: Long Lennar, Allegiant Travel in fund; no personal position