Long Position on RYL @ $30.75 on 9/17/2012 (Momentum)

The Ryland Group (RYL) operates as a homebuilder and a mortgage-finance company in the United States.

It engages in the design, construction, and sale of homes, as well as provides mortgage, title insurance, escrow, and insurance services. The company offers single-family detached homes; and attached homes, such as townhomes, condominiums, and mid-rise buildings, as well as sells lands and lots.

It builds homes for entry-level buyers, as well as for first and second-time move-up buyers.

Shares are in the handle formation of a bullish "Cup & Handle" and prices are expected to head higher out of this formation.

The rebound in the housing market, along with another round of refinancing, should bode well for this stock.

52-Week Trading Range: $9.15 - $31.55

Last Trade: $30.75

Stop Loss: $29.25

Target Price: $33.85

Updates

10/17/2012 1:14:57 PM

RYL gained 6.7% in 30-days. We were disappointed that did not reach our 10% target but market had several days of selling in the past 30-days. Moved the proceeds to KMX

Position closed on 10/17/2012 at price of $32.70 with a 6.34% gain in 30 days.

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