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When I heard that Treasury Secretary Henry Paulson, Fed Chairman Ben Bernanke and the two CEOs of Fannie Mae undefined and Freddie Macundefined were meeting this weekend to discuss a rescue package for the mortgage-financing giants, I wasn't sure how the market would react.

That is until I heard


Bill Gross talk about the way the feds might backstop the two. He would be the guy to listen to with regard to where money and influence might be applied. His assessment was right on, and the market is certainly applauding the outcome.

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As you are no doubt aware by now, the U.S. government will take over

Fannie and Freddie

under a conservatorship plan and receive senior preferred stock. This investment implies the full support of the U.S. government and should strengthen our housing market's shaky legs.

More important, foreign investors, who have been shying away from our mortgage-backed securities and our housing-related equities and bonds, may find a confidence in this maneuver. It may attract foreign investment into our housing markets, our real estate and our financial institutions. This could be the catalyst for a rebound in the sectors that have been hit hard lately.

Take this with a grain of salt: I am a trend trader and love buying stocks, commodities, real estate, concert tickets, anything, as they are making new highs. I have a clear "trader's lean" toward buying strength. It has served me well for many years.

This came up last Thursday, as I was watching


(HOV) - Get Hovnanian Enterprises Inc. Class A Report


Toll Brothers

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TheStreet Recommends

(TOL) - Get Toll Brothers Inc. Report

get waxed after reporting lousy quarterly numbers.

What would a trend trader want with these two dogs? I can't put my finger on it, but the thought process went as follows:

These guys are really reporting more bad numbers. ... Hovnanian is trading at $6.50! That was a $70 stock not too long ago. ... I know Ara Hovnanian personally, and he is a straightforward guy, an honest guy who is a great CEO of a founding-family company. At $6.50, I have to give this a look.

So, then I checked the others in the space, and focused on Toll Brothers. This stock is


for the year. Up 19%, in fact. The reason being thrown around the Street is that Toll builds luxury ($650,000 on average) homes for the wealthy. Toll has a strong presence in the upper echelon of homebuilding. It appears the wealthy aren't as affected by the economic slowdown as the rest of the country.

Toll's conference call also included a noteworthy tidbit: The comapny has more than $1.5 billion in cash. Most builders are burning through cash like a biotech firm without a cure.

To make it simple, HOV appears oversold, and TOL is shaking off a tsunami of bad news. Both will be watched carefully, and I refuse to stay with these very long unless they run green on my screen.

As always, trade with your head, not over it.

At time of publication, Bolling was long HOV and TOL, although holdings can change at any time.

Eric Bolling is a host on the new Fox Business Network. Bolling was one of the developers and original panelists (nicknamed "The Admiral") on CNBC's "Fast Money."

Bolling is an active trader specializing in commodities, resource trades and ETFs.

Bolling is a member of several exchanges including The New York Mercantile Exchange (NMX), The Intercontinental Exchange (ICE) and The Commodity Exchange of New York.

After spending 5 years on the Board of Directors at the NYMEX, he became a strategic adviser to that Board of Directors where he assisted in bringing the company (NMX) public. He has been included in Trader Monthly Top 100 in 2005 and 2006. Bolling was the recipient of the Maybach Man of the Year Award in 2007 for his contribution of philanthropy and willingness to de-mystify investing to Main Street.

Bolling graduated from Rollins College in Winter Park, Florida and was awarded a fellowship to Duke University. Bolling was an accomplished baseball player. He was drafted by the Pittsburgh Pirates where he played before his career was cut short due to injuries. He honors his baseball past by sporting the NYMEX trader badge, R.B.I.