Brian Kelly's Bullish Homebuilders Trade

Brian Kelly suggested on the show that traders should consider a long position in

. Kelly expects Fed to keep interest rates at current levels, which should, together with reduced mortgage rates, be a huge tailwind for homebuilders. He added that last time that government talked about support for housing market

traded sharply higher. The rally happened in 2011 and lasted through 2012. Since then the stock traded flat and now after Persident Obama's speech about reducing mortgage rates Kelly believes that

is going to move higher. Kelly showed on a chart that the stock is starting to break out from the channel of sideways trading that lasted for the last two years. He added that longer the period of sideways trading the more important is the break out.