Beazer Homes

It has been very frustrating for home-builders in the past couple of years due to the large inventory of available houses. One of the latest reports claims that we have just a six month inventory of houses now. This means it is time to buy home-building stocks like Beazer, BZH.

The company has been trading in a range of between $2 and $2.50 lately. Insider buying took place when the stock was around $2 per share. You may want to follow the insiders on this pattern. Even if you don't want to hold Beazer for the long term, you could make around 25% for your money during each trading cycle between $2 and $2.50 per share. If you do this twice a year, you will be ahead by 50%, and you will be easily beating the general stock market.

No Man's Land

As we move into the month of December for the stock market, we are basically entering a DMZ or no man's land where the upside and downside stocks are about equal. I took profits in the past couple of weeks on ERX, the 3X oil ETF, and TVIX, the double volatility index. After the recent stock market highs, it is not a good time to buy anything.

I have a limit buy order for TVIX at $38, and I will buy ERX again if it drops to $37. Until the European debt crisis and our own Congressional gridlock problems are resolved, I can't recommend any individual company stocks because the fundamentals don't matter anymore in our current world situation. If we were in a true bull market, it would be worthwhile to buy good companies based on fundamentals of year over year growth and other factors. But this is not the case in 2011, and 2012 may not be any better since it will be a major political year. So, the best course of action is to buy leveraged ETFs when they are low, and sell them when you have gained 20% or more. You will be able to repeat this cycle several times during the next year, and you will make a great profit if you are willing to be patient.