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Second Half Set-Up: Housing

Monday, 22 Jun 2009 | 6:12 PM ET

The story of 2009 so far goes something like this:

Three months of violent, uninterrupted sell offs, followed by three months of violent, uninterrupted rallies. A lot of sound and fury – for nothing:

The S&P 500has been flat on the year and the bulls and bears are evenly divided. The fate of this market rests on the final six months of the year. So this week Fast Money will settle the score.

Tonight’s burning issue – Will housing bottom?

Data this week is expected to show a spring increase in home sales, but a new study from Harvard University has said despite the Fed cheerleading this market, housing is not yet on the road to recovery. Would-be home buyers are being kept out of the market by creeping unemployment and would-be lenders – the shell-shocked banks – are making lending standards stricter.

As home prices have been sinking to levels not seen since 2003, traders are left asking: Is there any way housing can bottom in the second half?

I think the housing market remains challenged, speculates Joe Terranova. I don't think people trade up in this enviornment.

I don't love the homebuilders either, adds Tim Seymour. As far as I can see, people are not yet in a position to buy.

Second Half Setup
Fast Money traders discuss the future of housing.



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Trader disclosure: On June 22nd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (BAC), (BX), (EEM), (FCX), (FITB); Finerman Owns (TBT); Finerman's Firm Owns (FL), (MSFT), (PBR), (RIG), (NOK), (TBT); Finerman's Firm Owns (WFC) Preferred, (BAC) Preferred; Finerman's Firm Is Short (BAC), (WFC), (IJR), (MDY), (IWM), (SPY), (USO); Finerman's Firm Owns (WMT); Finerman's Firm Is Short (XRT); Terranova Owns (SDS), (TER), (XBI), (BTU), (ABT), (MSFT), (HES), (BTU); Terranova Is Short (XOM) Call Spreads; Terranova Is Short (OIH) And (OIH) Puts; Terranova Is Short (RIG) And (RIG) Puts; Terranova Is Short (FCX) And Is Short (FCX) Puts; Terranova Is Short (IBM); Terranova Is Short (GENZ) Call Spreads; Terranova Owns (GENZ) And Is Short (GENZ) Calls; Terranova Owns (X) And Is Short (X) Calls; Terranova Owns (MS) And Is Short (MS) Calls; Terranova Owns (DIS) Call Spreads; Terranova Owns (BRCM) And Is Short (BRCM) Calls; Terranova Is Short (IBM) Calls; Terranova Owns (RIMM) And Is Short (RIMM) Calls; Terranova Is Short August Gold Futures; Terranova Is Short August Crude Oil Futures; Terranova Is Short September Crude Oil Futures; Terranova Is Short December 2009 Crude Oil Futures; Terranova Owns December 2009 Crude Oil Futures; Terranova Is Short December 2011 Crude Oil Futures

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