then you take a look at the constituent stocks of itb, names like dr horton, lennar, where are theseuys actually operating? for the most part they're not operating in those markets they're operating in places where there is increasing housing demand, places like texas, georgia, north carolina, and florida. the secular push i think for housing in those markets could continue to support home building amazingly d.r. horton right now has only recently achieved the same level of revenues they've had before the housing market we saw going back to 2006 i think we can keep the trade simple here. looking for a bounce january the 34 calls, $1.45. this allows us to be nimble. it allows us to roll into a spread if we should so choose. to mitigate our risk i'm inclined to go along with carter here. this is a way we can trade it. >> if you didn't have the technical setup, maybe given how poorly the home building components in that etf act, you may want to press it because maybe this is the time you see rates busting out to five-year levels that you start to see the home builders get hit below that

to shares of dr horton fell 3% and the sector is now in a t. bear mar the home builder etf is down more than 20% from earlier this year thanks to rising rates. >> is inkts speaking of which the average rate on the fixed mortgage crossed 5% threshold for the first time in eight years. and for those looking to buy their first home it's entirely possible in may be the highest rate they have ever seen. so t question is, will this send a chill through the winter housing market? diana ol ibic looks at it tonight. >>> back in the early' 80s when esother slibt was in the white house mortgage r were three times what they are now. nd people still butt and sold homes. but today's biers, especially millennial buyers have short memories and high home prices m hae of them on the margins. >> there is always a fewye , a serge percentage that are on the edge of being able to qualify. and when ratesoe up as much as they have then that can push them out of being able to qualify for a home. bus of the debt to income guidelines associated with loan qualifications.

secular push, i think for housing in the markets could continue to support home building amazingly dr horton now has only recently achieved the same level of revenue they had before the housing market crash we saw going back to 2006 we can keep the trade simple here looking for a bounce i specifically was looking out to january, the 34 calls when i look at this earlier $1.45. this allows to be nimble, roll into a spread if we should choose and to mitigate risk to the downside in the event that what we see right now is just the beginning. but i'm inclined to go with carter here. and i think this is a way we can trade it simply. >> i guess if you didn't have the technical setup you'd say maybe given how poorly the home building components in that etf act that you maybe want to press it because maybe this is the time where you see rates busting out to 5-year levels that maybe you see the home builders hit below the uptrend. i make one other point you know, home depot, lowes make up almost 10% of the weight of the xhb. home depot doesn't act well. looks like a double top not different from the s

good earnings from pulte toll lennar dr horton into the green. volume especiallily heavy in the home building group. they were buying home builders like crazy at the bottom of the morning. the volume was huenink that has traders kplangs complaining. why? because traders want to see a tradeable bottom that's what they want. when is it over had? they don't see the signs they think the sentiment is still too positive pointing to the huge rally the s&p rose 60 points in the middle of the day. the conventional wisdom is the economy is good. a lot of stocks are oversold and washed out time to buy them these guys they want sentiment more negative. they want the vix higher if not the 50s like in february at least in the mid-30s or higher that's why most traders i talked to today felt that today didn't settle anything. but it was an indeterminate day. i have to agree with them on that one have a good weekend melissa. >> one question on the home builders, the traders were upset because of the volume was up and the home shld resist and didn't see the whoosh

in that case which one does he like well, he takes and looks at the weekly chart of dr horton. has been one of the better performing groups. it's right above the floor of support. this is amazing because i couldn't find a single good thing about this it was retested last week and if it stabilized he can see horton rallying back to 46. here's the bottom line the charts as interpreted by bob moreno suggest to buy the phillip morris stocks if bond yields go higher and buy the banks like citi if they go higher and consider owning a home builder if they stabilize right here remember, we own citi for my charitable trust which you can follow along by joining the club and the big bank reports on friday morning "mad money" is back after the break. >> announcer: lightning round is sponsored by td ameritrade >> it is time. it is time for the lightning round. sell sell sell sell sell sell sell - [ buzzer ] then it's over are you ready, skeedaddy kim? >> caller: hi, jim, kim from arizona. i was just calling to see what your thoughts are on - >> if you remember cigna 30 points came on the sh

dr. horton, speak to how that works when you look at just the rank ignorance that many men have about the female side of health care and what that means with everything from preventive medicine to contra exception to pregnancy, because that has been a big issue, i've got to say, for men in congress. >> it really has been. and it's staggering the lack of knowledge and awareness. it's even affected -- i have been a v.a. doctor. and it's even worse for women getting contraceptives in a gender specific care within the v.a. health care system. so i really am hoping to be a voice of competence who understands science and facts, and wants to bring my knowledge and expertise to the table for a change. >> this is gina. i'd like to say one more piece on that. you know, i think maybe at times it's that the men don't have the background in it. but it's not just exclusive to men. i think what is clearly lacking, though, is some people that are knowledgeable about it but just don't have the moral courage to stand up for communities that need to be heard. i mean, for example, a woman having a baby in te

and falling home sales have hurt housing related stocks as well you have maskt o whil pool, pulte, dr horton all down 30% or more two groups are down but not damaged. one is energy stocks devin, cab on the oil, pioneer natural resources, baker hughes. down 20 to 30% but financial sfks pnc prungs, fifth third, morgan stanley also 20 to 30% off recent highs you notice anything missing from this categories -- these categories it's health care not on the list. and little wonder, the whole sector is only 7% from the 52-week high with wig gains this year in pharma that's what saved this sector. back to you. >> it was a top performing secretary ner the third quarter. bob pisani at the nyse deja vu. but can you trust the bounce in and do you go in and do you buy? how do you know when the name is bombed out and bombed out value or bombed out for a reason >> well a couple of the names -- we talk about facebook -- you know why injury it's gone down but l brands, they didn't just go down. they've been a disaster. down 70% finishes the fourth quarter of 2015. because the core brandt victoria secret is st

once again we see all those housing-related stocks melissa mentioned, dr horton, kb home in housing,asco, all 52-week lows they have been on the 52-week low list for a couple of weeks now. just keep slowly drifting lower. guys, back to you. >>> thank you very much, now to rick santelli at the cme where it's going to be a very big week of auctions. >> reporter: absolutely. as a matter of fact, we have two tomorrow in the form of 3s and 10s, of course due to the columbus day closure yesterday if you look at yields we're down one and twos, down two and ten if you look at -- yes, we're drifting, but do remember, we're drifting from that 323 area that was friday's high yield close going back basically seven years, and the trade is very methodic as a matter of fact, if you look at the credit side of the equation, let's look at a one month of barkley's high yield, from a real security's standpoint, yes, the spreads have turned up, but from very low levels had iswhich is a goo thing. capital on the cheap side, maybe more interest rate and credit differentiation, but it really does exaggerate

dr. ford. i thought she was handled respectfully. i thought kavanaugh was treated like crap. boo yourself. >> joining me right now, democratic congress woman horton the first time i heard that as it just happened. that is lindsey graham reacting to the president last night. what do you say? >> senator graham should have left it with the president shouldn't have said that. that would have been enough. what we saw last night, what the country saw and what the world saw was a mean, disgusting attack on a sexual assault victim. now, it reminds me of the kind of attack that the president did on the disabled person when he was running. it looks like he gets some joy out of attacking helpless people. as lindsey graham said it didn't help his cause any. i think it hurt his cause. remember, it was this president who after dr. ford's testimony said that he found her credible because the testimony was so compelling. perhaps he wants to criticize him now upon thinking of things she might have said or shouldn't have said or couldn't remember. there is a way to do that without attacking her. that's what that was, a straight out mean attack on her that didn't h