Part of the reason I am somewhat bearish on US stock. There often appears to be a correlation between the lumber and stocks.
See my previous post (link below) for longer term chart. If lumber keeps falling it favors stocks will too.
$LL Lumber Liquidators catching support at $20. Oversold post earnings.
Lumber has reached a peak, after weeks of flirting with all time high territory.
LBS - LUMBER - SHORT on 484 stop on 550
MOnthly Lumber futures LB1! vs SPY Looks to me like the last 7 times there has been a major trend line break in lumber futures it was a harbinger of what was to come in stocks. Worth keeping an eye on it. PS: for the few folks out there who like EWT it suggests to me we have one last 5 wave up in lumbar to 55 then the sh=t hits the fan.
Looking at the charts for Lumber Futures, I was originally upset that I missed the absolutely insane rally in Lumber going back to the start of 2016. However, no use in getting pissed about the past, let's focus on the present. Lumber just formed a double top with price around 400 going back to 2013. I am waiting for confirmation of a bearish reaction to the...
Lumber futures appear to have topped against a massive monthly mode. You can go short with stops above the highs to be safe, target a retest of the uptrend mode from the lows. I overlaid EURUSD and USOIL so you can compare the price action. It's clear we're witneseeing a major dollar rally here. I wouldn't discard its significance. If you're not in any of my...
Using Heikin Ashi sticks to smooth out the price.
Earlier this month, the idea of lumber being a signal for economic data was brought to the table (here). Lumber is not necessarily a trader’s first go-to for evaluating economic forecasts, but there is a striking resemblance in trend for lumber and the ISM manufacturing PMI data. As lumber prices dive, manufacturing data tends to do the same (and vice versa)....
Lumber is highly correlated to the ISM manufacturing index (or vice versa?). Nevertheless, the weakness in lumber prices is corresponding with the softening manufacturing data, although manufacturing data from Markit suggest manufacturing is weaker than ISM reports. New orders index collapsed from Nov/Dec 66 to 57. Prices have noticeably declined, too. Anyways,...