Top Homebuilder Short-Squeeze Plays

Updated from 7:03 a.m. EDT

The stock market has bottomed, even if on a short-term temporary basis. The major fall in the stock market has created significant short-squeeze opportunities, especially in the homebuilder stock arena.

A short squeeze takes place when a stock's short-sellers scramble to cover their bearish positions when that stock moves sharply upward; their buying ends up pushing shares even higher. Short positions of stocks are measured by the short-squeeze ratio, which represents the number of days it would take for the short-sellers to cover their positions based on the recent daily volume of the stock.

This week, Stockpickr has come up with a list of the top homebuilder short-squeeze plays, including NVR(NVR Quote - Cramer on NVR - Stock Picks), Hovnanian(HOV Quote - Cramer on HOV - Stock Picks) and Lennar(LEN Quote - Cramer on LEN - Stock Picks).

To read more, visit Stockpickr.com.