Cramer's 'Stop Trading!': Buy Homebuilders

Jim Cramer thinks KB Home's quarter was a "thing of beauty."

Author:: TheStreet.com Staff
Publish date:: Mar 27, 2009 3:36 PM EDT

"This has been one of the greatest rallies in history," Jim Cramer on CNBC's "Stop Trading!" segment on Friday. "If it's really more than a bear market rally, we need to see the banks go down a little."

Cramer said that natural gas stocks, which have been up "pretty much every day," need to take a breather, too.

Devon Energy

(DVN) - Get Report

CEO Larry Nichols "is absolutely one of my favorites," he said, but he said that stocks such as Devon,

Anadarko

(APC) - Get Report

and

Apache

(APA) - Get Report

need to cool down.

"How could they not take a break?" he said. "Natural gas is at levels I cannot believe. They all need to take a pause."

Cramer said he doesn't think homebuilder

KB Home

(KBH) - Get Report

is in a vacuum. "That KB Homes quarter was a think of beauty," he said. "Sorry, bears."

As for

Pulte Homes

(PHM) - Get Report

and

DR Horton

(DHI) - Get Report

, "I think you buy 'em," he said.

At the time of publication, Cramer had no positions in stocks mentioned.

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