Trading the Housing Bottom

In a brief Stop Trading! Thursday, running during the continuing Big Three automakers testimony on Capitol Hill, Cramer offered three stocks to own if you believe housing will soon bottom.

Home Depot , Lowe’s and Sears are all buys, he said, on the assumption that the housing sector will finally bottom by June 30 of next year, a prediction Cramer’s been making for some time now.

Cramer pointed to the PHLX Housing Sector Index, which includes stocks like Toll Brothers, and which looks to be bottoming right now. If history is any guide, then home prices should follow six months from now.

“That’s exactly how the market works,” Cramer said.

Cramer added that despite the negative press about Sears, the “news isn’t bad there” and that the company is “not going out of business.”

Watch Cramer’s interview with Toll Brothers CEO Bob Toll Thursday night on Mad Money.

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