GO
Loading...

No.1 - Is The Worst Over?

Tuesday, 22 May 2007 | 9:00 PM ET

It may finally be getting easier to sell that house of yours again. The SPDR S&P Homebuilders (XHB) has turned this month, jumping 6% over the last five days alone. More than half of that came today on comments from Treasury Secretary Hank Paulson who suggested the housing sector may get a little better. Is the worst over?

Guy Adami updates his Toll Brothers (TOL) trade on the housing market. He recommends investors stop out any close below $27.75. The stock closed at $30.25 and Guy adds, as a trade, he still loves this name.

The Top Three #1
Is the worst over?



Pete Najarian likes Standard Pacific (SPF) because option investors are buying June 22, June 25 and July 25 calls. That suggests to Pete that the housing market is near a bottom.

Eric Bolling couldn’t disagree more. He reminds DR Horton (DHI) CEO had said all 12 months are going to “suck” for his company. Homebuilders are down 9% year to date, he notes.

Jeff Macke says Hank Paulson is talking his book.

Look at a company like Dell (DELL), Jeff says. The fundamentals aren’t getting better but investors can own the stock as a trade. It’s the same thing for the homebuilders. He thinks they go higher from here and that’s a trade.

Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.

Trader disclosure: On May 22, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (SWY); Najarian Owns (MDT), (STI); Bollings Owns Coffee, Sugar, Gold, Silver, March Natural Gas Futures, Is Short April Natural Gas Futures

  Price   Change %Change
4331
---
DHI
---
SPF
---
TOL
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report

  • Jay Yarow, The Business Insider, and Steve Milunovich, UBS, discuss whether Tim Cook is to blame for Apple's drop in growth. I think it's pretty clear they missed the big phone market and overestimated the success of the plastic 5C phone, says Milunovich.

  • CNBC's Eamon Javers reports on Bill Ackman's stake in Allergan. Javers says this is a classic case of insider trading that is not against the rules.

  • FMHR trader Josh Brown thinks Dunkin' Brands looks fantastic technically, while Mike Murphy says investors are questioning the company's massive expansion plans.