Najarian says new uses of TARP funds to buy up to $500 billion dollars worth of mortgage securities backed by Fannie Mae and Freddie Mac should stimulate home buying. Already shares are starting to climb. “I like Centex [CTX] and Ryland [RYL] for unusual volume in options contracts,” he says.

Ryland Group (RYL) downgraded to neutral from outperform at Credit Suisse and price target reduced to $19 from $28. Higher impairment charges and weak orders take 2008 EPS down to ($8.65) from ($7.45) and 2009 EPS to ($3.95) from ($0.50).

4

(I like Ryland (RYL) too on this bill.)

2. Toll Bothers (TOL) is up. I know that doesn't matter much, but if we could get a tiering where people dislike Lennar (LEN) and like Ryland (RYL), Toll and KB Home (KBH) -- which makes sense -- and keeps taking up Standard Pacific (SPF) now that it has its financing, then you have a potential HGX trade.

How to Trade, Technically Speaking
Jim Cramer offers a technical overview of this overbought market, and how to make money.

Click here to watch the video.

Cramer: How to Trade, Technically Speaking
Jim Cramer offers a technical overview of this overbought market, and how to make money.

Click here to watch the video.

Another survivor of the homebuilding shakeout

Downgraded by Citigroup from Buy to Hold

Short % of Float (as of 10-Apr-07): 26.00%

bad industry