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Any Shelter In Housing?

Wednesday, 30 Jun 2010 | 6:10 PM ET

Going into 2010 bulls were hopeful that after such sharp declines, housing had found a bottom.

But fast forward 6 months and there's chatter of a double dip recession, with performance in the Homebuilders ETF certainly telling the story. Take a look:

What must you know about this sector in the second half?

I think housing stocks are heading much lower, says Stephen Weiss author of The Billion Dollar Mistake.

"Housing stocks follow book value," explains Weiss, "and the reason investors were buying is that they think they’re trading close to book. But book value is being rewritten all the time because land values keep going down."

Housing Headed to the Basement?
Discussing where housing is headed, with Stephen Weiss, The Billion Dollar Mistake author.

And he doesn't see the sector stabilizing anytime soon.

"The fact is there are no buyers out there," he says. "Home buying is based on job creation and there's been no job creation. And the tax incentive depleted the buying population for a pretty long period of time."

What's the trade?

I don’t like the sector, adds Brian Kelly, but the sector has moved so much lower I wouldn’t go short.

Cemex may be oversold here, adds Tim Seymour, but it’s a trade not a long-term hold.



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Trader disclosure: On June 28, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (IPSU), (BX), (AGU), (PFE), (TER), (GMCR), (RSX), (TER), (AXP), (KO), (KR), (COST), (AMZN), (TEVA), (BMO), (DIS), (XCO), (SWN), (GMCR), (IPI), (SU), (XOM), (RDS.A), (COP), (OXY), (V), (FXB), (UPL), (JPM), (MS), ( C), (BAC), (GMCR); Terranova owns (GLD) 123 JULY PUTS; Terranova owns (GLD) July 120 puts; Terranova Owns (GS) Calls; Kelly owns (BP) puts; Kelly owns (FCX) puts; Kelly owns (GLD); Kelly owns (GDXJ); Kelly is short (GS); Seymour owns (AAPL), (BAC), (F), (MON); Pete Najarian owns (AKAM) call spreads; Pete Najarian owns (TEVA)

For Anthony Scaramucci
Scaramucci and SkyBridge Capital own (C)
Scaramucci and SkyBridge Capital own (F)
Scaramucci and SkyBridge Capital own (GS)
Scaramucci and SkyBridge Capital own (JPM)

For Joe Terranova
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (AMKR)
Virtus Investment Partners owns more than 1% of (IGE)
Virtus Investment Partners owns more than 1% of (DBV)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLV)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (DRYS)

For Brian Kelly
Accounts managed by Kanundrum Capital own (AUY)
Accounts managed by Kanundrum Capital own (GFI)
Accounts managed by Kanundrum Capital own (GDX)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own Gold
Accounts managed by Kanundrum Capital own Treasuries
Accounts managed by Kanundrum Capital own US Dollars
Accounts managed by Kanundrum Capital are short British Pound
Accounts managed by Kanundrum Capital is short (AMZN)
Accounts managed by Kanundrum Capital are short (RCL)
Accounts managed by Kanundrum Capital are short (XLY)
Accounts managed by Kanundrum Capital are short (XLE)
Accounts managed by Kanundrum Capital are short (AFL)
Accounts managed by Kanundrum Capital are short (CME)
Accounts managed by Kanundrum Capital are short (EWI)
Accounts managed by Kanundrum Capital are short (EWO)
Accounts managed by Kanundrum Capital are short (GS)
Accounts managed by Kanundrum Capital are short (HIG)
Accounts managed by Kanundrum Capital are short (RKH)
Accounts managed by Kanundrum Capital are short (XLF)
Accounts managed by Kanundrum Capital are short (XLI)
Accounts managed by Kanundrum Capital are short (FCX
Accounts managed by Kanundrum Capital are short (GFI)
Accounts managed by Kanundrum Capital are short (JOYG)
Accounts managed by Kanundrum Capital are short (XLB)
Accounts managed by Kanundrum Capital are short (XLK)
Accounts managed by Kanundrum Capital are short Oil
Accounts managed by Kanundrum Capital are short the S&P 500
Accounts managed by Kanundrum Capital are short the Canadian dollar
Accounts managed by Kanundrum Capital are short the Euro vs. Yen
Accounts managed by Kanundrum Capital are short the Aussie Dollar
Accounts managed by Kanundrum Capital are short (CAT)
Accounts managed by Kanundrum Capital are short (MET)
Accounts managed by Kanundrum Capital are short (WYNN)

For Whitney Tilson
Funds Managed By Tilson Own (BP)
Funds Managed By Tilson Own (MSFT)
Funds Managed By Whitney Tilson Own (BP), (XOM)

For Peter Boockvar
Boockvar owns Euros

For Ed Mills
***No Disclosures***

For Colin Gillis
***No Disclosures***

For Steven Weiss
Weiss is short (SLG)

For Mike Khouw
Cantor Fitzgerald makes a market in (APC)


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  Price   Change %Change
CEME
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SPDR SP HB
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