The cracks that are the basis for this rate cut started with poor lending practices in the housing market. Did Bernanke signal that he won’t standby and let the housing slump drag us into a recession? As a result, should housing stocks be back in the ‘buy’ column?
As a trade, and only as a trade, some homebuilders are back in play, Guy Adami said. He stressed that he doesn’t believe the industry is safe but there may be further upside in names like Hovnanian (HOV), Pulte Homes (PHM) and Toll Brothers (TOL).