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‘Data Doesn’t Matter’: Pros Pick Housing Plays

Wednesday, 19 Sep 2012 | 1:09 PM ET

Housing-related stocks still have room to run, regardless of whether home prices have officially bottomed, CNBC’s “Fast Money” market experts said Wednesday.

“The stocks are saying that we’ve hit a bottom on their individual, their granular stories,” said Stuart Frankel’s Steve Grasso.

“If you look at anything this the XHB, all of those names have been running. We thought they were extremely toppy, but if you look at anything from Whirlpool to Lumber Liquidators — all these silly names that people don’t even realize they’re in the index. Forget about Toll Brothers, those are the cream of the crop. You want to be in a name like Toll, Home Depot, USG.”

Data Doesn't Matter: Pros Pick Housing Plays
Housing-related stocks have room to run, regardless of what home prices are doing, the "Fast Money" pros say.

On Tuesday, Yale University economist and housing expert Robert Shiller said the housing market was showing signs of recovery but added that it was too soon to say prices had bottomed. (Read More: Shiller: ‘Not Ready Yet’ to Call Housing Bottom)

“I would say, again, Professor Shiller’s data doesn’t matter,” Shelter Capital’s Brian Kelly said, adding that he liked Weyerhauser as a housing play.

“That’s going to be your lumber exposure, your hard assets exposure. You’re also going to get a dividend back,” he said. “I think that’s the way to play it.”

Short Hills Capital’s Stephen Weiss admits he missed the sector’s run-up but thought one stock still showed potential. “I’d still go to Home Depot,” he said.

OptionsMonster.com’s Jon Najarian noted that investors were still buying home builders D.R. Horton, Pulte and Lennar.

“I think Professor Shiller knows in his heart that the bottom has been in, but he didn’t call it,” he said.

Trader disclosure: On Sept. 19, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in GLD; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in AMZN; Jon Najarian is long call spreads in GOOG; Jon Najarian is long call spreads in SINA; Jon Najarian is long call spreads in OPEN; Jon Najarian is long call spreads in GLW; Jon Najarian is long call spreads in PXD; Jon Najarian is long GLUU; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long STSI; Steve Weiss is long AAPL CALLS; Steve Weiss is long EUO; Steve Weiss is long M; Steve Weiss is long AIG; Steve Weiss is long BAC; Steve Weiss is long BBT; Steve Weiss is long LCC; Steve Weiss is long QCOM; Steve Weiss is long SODA; Steve Weiss is long BRCM; Steve Weiss is long HK; Steve Weiss is long CLNY; Steve Weiss is long AMTG; Steve Weiss is long MTGE; Steve Weiss is short AAPL PUTS; Steve Weiss is short AKS; Steve Weiss is short RIO; Steve Weiss is short VALE; Brian Kelly is long GLD; Brian Kelly is long SLV; Brian Kelly is long QQQ; Brian Kelly is long EEM; Brian Kelly is long TIP; Brian Kelly is long RNA; Brian Kelly is long WHEAT; Brian Kelly is long CORN; Brian Kelly is long SOYBEANS; Steve Grasso is long AET; Steve Grasso is long ASTM; Steve Grasso is long AUO; Steve Grasso is long BA; Steve Grasso is long F; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S.

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