TheStreet.com TV Recap: How to Play the Builders Now

Going long KB Home (KBH Quote) and short the housing sector index (HGX) is a good trade to put on at the beginning of next week, Jim Cramer said on TheStreet.com TV's Wall Street Confidential Web video on Friday.

"I don't want to [short] individual housing stocks anymore," he said. "They're all too heavily shorted."

Instead, he said, he expects the HGX index (the Philadelphia Stock Exchange Housing Sector Index (HGX Quote)) to bounce at the beginning of the next quarter because, although not advisable, people like to buy the losers of the quarter. ...