The Canadian Technician

Lumber Stocks Soar On Tariff Announcement

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WIth tariffs being applied today, I thought I would take a look at the forestry stocks. I think we'll all be surprised to see them soaring with $LUMBER limit down in the Futures market today. Note the $LUMBER price will be updated after the market close. This is yesterday's close for $LUMBER and real time for the stocks.


Starting with the WOOD ETF, the chart is beautiful. In the zoombox we can see todays action.

Interfor (IFP.TO) looks great.

West Fraser (WFT.TO) has the top percentage move in the group today..Nice!

Canfor (CFP.TO) is also having a great day.

Resolute (RFP.TO) is resolute about going higher. This is a really nice position today.

Norbord (OSB.TO) continues to add oriented strand board on the roof.

The bottom line is it would appear all of the companies have either added enough US operations or they expected this level of tariff. It would appear to be business as usual.

I presented some charts on the MarketWatchers Live Webinar yesterday. Click here to see some of the charts in the MarketWatchers blog. I will be co-hosting the Friday MarketWatchers LIVE show with Erin on Friday. Click the On-Air button on the StockCharts platform at 12 EDT! I'll have lots on this weeks Commodities Countdown Video Recording. With the meltdown in Gold, Silver, Oil and Natural Gas, we have lots to cover. To see all of my recordings, you can find them here

Good trading,
Greg Schnell,  CMT, MFTA.

 

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is also the author of Stock Charts for Dummies (Wiley, 2018). Learn More
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