Housing plays should continue to move higher into year's end, Steve Grasso, director of institutional sales at Stuart Frankel, said on Tuesday's episode of CNBC's "Fast Money" TV show. He is long KB Home (KBH) and said Home Depot (HD) has slightly more upside.
Must Read: Warren Buffett's Top 10 Dividend Stocks
Sell Home Depot and buy Lowe's (LOW) , said Guy Adami, managing director of stockmonster.com. "I'd be careful," he added, in regards to PulteGroup (PHM) , which has rallied to $21 from a recent low of $17.
An improving labor market and lower interest rates should help the housing market, according to Tim Seymour, managing partner of Triogem Asset Management. His top pick was Beazer Homes (BZH) .
Karen Finerman, president of Metropolitan Capital Advisors, pointed out the auto industry has rallied strongly over the past few years, reaching pre-recession sales levels. It's surprising the housing market has had a similar move, she noted.
The conversation quickly shifted to a macro theme, when Raoul Pal, publisher of the Global Macro Investor, said that oversupply will likely remain an issue for oil prices. The lack of demand doesn't help either, but the biggest downward pressure that still exists is the U.S. dollar.
The U.S. dollar is likely to continue to move higher and when coupled with the supply and demand metrics for crude, West Texas Intermediate could drop as low as $30 to $40 per barrel, he reasoned. As for other currencies, the Japanese yen and the euro are likely to move lower as central banks in each region continue to look at stimulus as a means for boosting economic activity.
Seymour agreed that the U.S. dollar is likely to continue higher, which is why he sees gold breaking below $1,100 per ounce. Investors can also sell the CurrencyShares Canadian Dollar ETF (FXC) and the CurrencyShares Australian Dollar ETF (FXA) .
Must Read: 12 Stocks Warren Buffett Loves in 2014