Jim Cramer's Mad Money Review

Homebuilders are getting gloomier about the slumping housing market, as a 22-year-old index that tracks their sentiment set a new record low Tuesday.
The National Association of Home Builders said its housing market index, which tracks builders' perceptions of conditions and expectations for home sales over the next six months, fell two points to 18 in October, the lowest level since the index began in Jan. 1985. It was the eighth straight monthly decline.
The consensus forecast of economists surveyed by Thomson/IFR was for a reading of 19.
Index readings higher than 50 indicate positive sentiment. The seasonally adjusted index has been below 50 since May 2006.
The report came as Treasury Secretary Henry Paulson, in a speech at Georgetown University's law school, said the housing market correction is persisting for longer than expected and appears likely to "continue to adversely impact our economy, our capital markets and many homeowners for some time yet."
Declines in builder confidence were seen across the country, except for the Midwest, which increased by two points but remained the weakest region nationwide.
Source: Alan Zibel, AP Business Writer

Labels: BZH, CTX, DHI, Homebuilders, HOV, KBH, LEN, PHM, RYL, TOL

The Fed's 50 point cut on Tuesday sparked the stock market, and CNBC's "Fast Money" discussed why the bulls are running, and what it means for financial stocks:Najarian: Tuesday's actions all about the financials. Financial Select Sector SPDR, ton of volume in call options.Macke: Can't be short financials now.Adami: continues to like financials; Lehman Brothers(LEH), Goldman Sachs (GS) and Morgan Stanley (MS)All Clear on Wall Street? CNBC's Charlie Gasparino discussed whether brokers are a buy now. Gasparino feels confident about most of the brokers except Bear Stearns (BSC)--lease diversed and tied to credit markets.OIL: Crude oil hit another record touching $81.51 and gold traded to $735, its highest level in 27 years. Author Dennis Gartman: Shocked by feds decision. Thinks stock market will continue to climb.Housing Market: Adami: housing stocks are back for a trade. He likes Hovanian, (HOV), Toll Brothers (TOL) and Pulte Homes (PHM)Finerman: Still likes Home Depot(HD), which she owns for its cheap valuation.Word on the Street: Cummings (CMI) and Caterpillar (CAT) exploded higher on the Fed cut. Najarian: Thinks CAT has much more upside to come.Global: China and Brazil's markets soared on the rate cuts. Tim Seymour, Principal at Red Star Asset Management, joined the crew to discuss the emerging markets. Seymour likes gold and Brazil ETF (EWZ)Face 2 Face:Viewer writes: "What happened to the recommendation to get out of gold if the Fed dropped its rates?" Adami reiterated his bearish stance on gold.Viewer writes: "Should I sell my October $195 call options on Goldman Sachs (GS) now or is there still more upside?" Najarian- feels strong about GS, but you should take half the position off before earnings.Viewer writes: "What is your outlook for Tiffany's (TIF) as the holiday season approaches?" Macke is positive about Tiffany's and Blue Nile (NILE)Pops & Drops:Pops: Macke-Caterpillar (CAT), Finerman-Target (TGT), Adami-Alcoa (AA)-could be bought out by Najarian's pick-Billiton (BHP), and Finerman-Wendy's (WEN)Drops: Najarian-E*Trade (ETFC), Macke-Hovnanian(DOG), Adami-Boeing(BA)Final Trade:Macke- Macy's (M)Finerman- Altria (MO)Adami- Nucor (NUE)Najarian- Companhia Vale do Rio Doce (RIO)

Labels: BHP, BSC, CAT, CMI, CNBC, ETFC, EWZ, Fast Money, GS, HD, HOV, LEH, MS, NILE, PHM, SPDR, TGT, TIF, TOL, WEN

Housing stocks rose along with the broader market Tuesday after the U.S. central bank sharply cut its target interest rate for the first time in four years.
The Federal Reserve cut the federal funds rate by half a percentage point to 4.75 percent, exceeding expectations on Wall Street for a quarter-point cut. The bank said it made the move to prevent the housing market turmoil from causing more widespread economic problems.
The housing sector is in the third year of its worst contraction in 16 years. Earlier Tuesday, a reading of business sentiment among homebuilders matched its lowest level ever in September, primarily because builders are seeing record-low numbers of potential buyers.
The Fed's move makes it less expensive for mortgage lenders to borrow money to finance loans to home buyers, which should lower consumer borrowing rates. Investors expect that to boost demand among potential home buyers who had become priced out of the market for a home loan.
Here's a look at how shares of some major homebuilders fared in afternoon trading Tuesday .
D.R. Horton Inc. rose 63 cents, or 4.3 percent, to $15.15.
Pulte Homes Inc. rose 60 cent, or 3.7 percent, to $16.69
Hovnanian Enterprises Inc. jumped $1.68, or 14.9 percent, to $13.02
Lennar Corp. rose 29 cents to $26
Centex Corp. rose 59 cents, or 2 percent, to $28.43
Toll Brothers Inc. rose 62 cents, or 2.2 percent, to $28.46
Published by AP

Labels: CTX, DHI, Federal Reserve, Hot Stocks, Housing Stocks, HOV, LEN, PHM, TOL

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Capital One Financial Corp. Sept 85 Calls (NYSE:COF - News). COF's PowerRating is 5.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Baidu.com Sept 160 Puts (NasdaqGM:BIDU - News). BIDU's PowerRating is 3.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Mastercard Inc. Aug 180 Calls (NYSE:MA - News). MA's PowerRating is 7.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Southern Copper Corp. Aug 95 Puts (NYSE:PCU - News). PCU's PowerRating is 4.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Symantec Corp. (NasdaqGS:SYMC - News). SYMC's PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Hovnanian Enterprises (NYSE:HOV - News). HOV's PowerRating is 5.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Motorola Inc. (NYSE:MOT - News). MOT's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: BIDU, COF, Hot Stock Options, HOV, MA, MOT, PCU, SYMC

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
First Solar Inc. June 80 Calls (NasdaqGM:FSLR - News). FSLR's PowerRating not available due to less than 200 days trading history.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Weyerhauser June 80 Puts (NYSE:WY - News). WY's PowerRating is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Apple Inc. July 105 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating is 3.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Dendreon May 17.5 Puts (NasdaqGM:DNDN - News). DNDN's PowerRating is 2.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
McDermott International (NYSE:MDR - News). MDR's PowerRating is 4.
Pride International (NYSE:PDE - News). PDE's PowerRating is 4.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None today
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Hovnanian Enterprises (NYSE:HOV - News) . HOV's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, DNDN, FSLR, Hot Stock Options, HOV, MDR, PDE, WY

Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Allegheny Technologies Apr 120 Calls (NYSE:ATI - News). ATI's PowerRating is 5.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Whole Foods Market Inc. Apr 45 Puts (NasdaqGS:WFMI - News). WFMI's PowerRating is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Intuitive Surgical Apr 115 Calls (NasdaqGS:ISRG - News). ISRG's PowerRating is 4.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
iShares MSCI Emerging Markets Index May 105 Puts (AMEX:EEM - News). EEM's PowerRating is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
None today.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None today.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Advanced Micro Devices (NYSE:AMD - News). AMD's PowerRating is 6. Hovnanian Enterprises Inc. (NYSE:HOV - News). HOV's PowerRating is 5. Home Depot (NYSE:HD - News). HD's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AMD, ATI, EEM, HD, Hot Options, HOV, ISRG, WFMI