Cramer based his conclusion on an analysis of the charts of the seven largest home builders, including Toll Brothers (TOL), Centex (CTX), D.R. Horton (DHI), Pulte Homes (PHM), Lennar (LEN), MDC Holdings (MDC) and KB Homes (KBH).

Cramer: Housing's Bottom Is Near:
With Bob Toll changing his tune on housing, he signals to the market housing isn't as bad as mainstream media thinks, says Jim Cramer.

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Fifth Street IPO Shows Fortitude:
The IPO market is stuck in reverse, but small business lender Fifth Street Finance beat the odds to go public. CEO Leonard Tannenbaum explains his strategy in this economy.

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That's bullish for my two faves in a hated industry: KB Home (KBH) and Toll Brothers (TOL), the two best houses in a real crummy neighborhood.

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.

For those of you who are high risk traders, you might want to dip your toe in Centex (CTX), DR Horton (DHI), KB Homes (KBH) or Toll Brothers (TOL), Adami counsels.

In other sectors, Cramer said he likes Owens Corning (OC) and would even consider Toll Brothers (TOL) as a trade. And finally, in retail he'd consider picking up some Costco (COST), Wal-Mart (WMT), a stock which he owns for his charitable trust Action Alerts PLUS, Jones Apparel (JNY) and VF Corp (VFC).

The Real Story Wrap: Greenspan, Oil Lift Stocks
Simon Constable explains how falling energy prices and unusual, but positive, words from former Fed chairman Alan Greenspan helped lift stocks. Plus news of a possible deal in beer sector.

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Cramer Interviews Toll Brothers CEO
In this May 13 'Mad Money' clip Jim Cramer and Bob Toll discuss Toll Brothers' quarterly results.

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Cramer: Homebuilders Aren't Doomed
Jim Cramer breaks down Toll Brothers CEO Bob Toll's comments to see where the sector's heading.

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lost my shirt

all homebuilders

it will still be a while before the recovery

Jim Cramer keeps getting in he way of the natural course of the price.

bad industry

I paid high and they're now very low

real loser

Too much inventory in the channel

Homebuilder

depression