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Homebuilders On Shaky Foundation

Homebuilders were murdered Monday. Investors seem to be anticipating more bad news when the government reports existing home sales data Tuesday. Meanwhile, industry giants Lennar (LEN) and KB Home (KBH) report earnings this week. Has the housing market bottomed?

Karen Finerman expects to see write-downs and says the real question for her is, what will be the magnitude of these write-downs.

She recommends avoiding highly levered companies such as WCI Communities (WCI) and Hovnanian (HOV).

Guy Adami tells investors if you don't have to trade in this sector, why do it?!

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Trader disclosure: On Sept. 24, 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 (DIS), (EMC), (ATVI); Najarian Owns (AAPL), (DGX), (VCLK); Najarian Owns (TSL) Options; Finerman's Firm Owns (JNJ), (NMX), (NYX), (VCLK), (TGT); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm And Finerman Own (HD), (FLS); Finerman's Firm Owns (MSFT) Options

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