Prudently Prune Homebuilders

Since all of these stocks appear range-bound, I will ignore their weekly chart profiles, as this measure works best in trending markets.

Centex (CTX Quote - Cramer on CTX - Stock Picks) is trading right around its fair value. Investors should wait to add to positions on weakness to my semiannual value level at $69.86 and reduce positions on strength to my quarterly pivot at $78.22.

KB Home (KBH Quote - Cramer on KBH - Stock Picks) is trading 3.6% below its fair value. Investors should wait to add to positions on weakness to my semiannual value level at $66.51 and reduce positions on strength to my monthly risky level at $88.23.

Lennar (LEN Quote - Cramer on LEN - Stock Picks) is trading 11.8% below its fair value. Investors should wait to add to positions on weakness to my annual value level at $57.35 and reduce positions on strength to my semiannual risky at $73.24.

Pulte Homes (PHM Quote - Cramer on PHM - Stock Picks) is trading 12.7% below its fair value. Investors should wait to add to positions on weakness to my semiannual value level at $37.26 and reduce positions on strength to my quarterly risky level at $49.90.

Ryland Group (RYL Quote - Cramer on RYL - Stock Picks) is trading 7.2% below its fair value. Investors should wait to add to positions on weakness to my annual value level at $70.16 and reduce positions on strength to my semiannual risky level at $99.48.

Toll Brothers (TOL Quote - Cramer on TOL - Stock Picks) is trading 10.9% below its fair value. Investors should wait to add to positions on weakness to my annual value level at $29.99 and reduce positions on strength to my quarterly risky level at $49.40.