The Canadian Technician

Lumber's Slumber Leads Us To Wonder


So I keep noticing lumber related stocks going up, yet Lumber ($LUMBER) is not performing. First here is $LUMBER. Does this look like a chart generating breakout moves on lumber stocks? It did not to me.

Here is a look at a CandleGlance view of USA and Canadian Lumber related stocks. This includes a few paper stocks.  You can look at the SCTR rankings and notice how many are near or above 75.

I don't have a reason for it, which makes me more cautious. There are a significant number of stocks moving into the top quartile. By the time its obvious its too late. I would definitely have a stop as I don't see the conditions to breakout but some of these are going vertical for 2 or 3 weeks. Some are up 30%! 

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Greg Schnell, CMT

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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