No.1 - Is The Worst Over?

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.

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.

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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