'Fast Money' Recap: Housing Party

Dylan Ratigan hosted CNBC's "Fast Money" Monday night. He kicked off the show with a discussion around Fannie Mae(FNM Quote - Cramer on FNM - Stock Picks) and Freddie Mae(FRE Quote - Cramer on FRE - Stock Picks), which saw their shares plunge after the U.S government took over the companies.

Ratigan asked the traders if they are any more confident to buy stocks today than on any other day this year. Pete Najarian said yes. He advised viewers to consider Morgan Stanley(MS Quote - Cramer on MS - Stock Picks). He also disclosed that he added to his put position in Lehman Brothers(LEH Quote - Cramer on LEH - Stock Picks).

Jeff Macke said he likes Wal-Mart(WMT Quote - Cramer on WMT - Stock Picks), which broke out technically today. Guy Adami mentioned that Church & Dwight(CHD Quote - Cramer on CHD - Stock Picks) and Johnson & Johnson(JNJ Quote - Cramer on JNJ - Stock Picks) continue to work.

Ratigan switched the conversation to the housing market. Macke said that if he were long any homebuilding stocks right now, he would be taking profits. Adami pointed out that the 30-year mortgage rate went from 6.5% to 6% today. He said he likes Home Depot(HD Quote - Cramer on HD - Stock Picks) for a play on the housing recovery.

Finerman said that if you want to play in the housing sector, buy something like MDC(MDC Quote - Cramer on MDC - Stock Picks) or Centex(CTX Quote - Cramer on CTX - Stock Picks) that isn't over-leveraged. Najarian explained that the homebuilding stocks have been moving higher because of the high short interest in the sector. Macke and Najarian both agreed that the homebuilders are trading vehicles only.

Ratigan brought up a report out of the Financial Times that said subprime king and hedge fund manager John Paulson told investors he's looking to get more involved with the financial sector. Finerman said she likes the idea, and she said she would take a look at Fannie Mae(FNM Quote - Cramer on FNM - Stock Picks) preferred stock, General Electric(GE Quote - Cramer on GE - Stock Picks) and Citigroup(C Quote - Cramer on C - Stock Picks).

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