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%!
If you liked this article, feel free to forward it to investing friends and family. If you didn't like the blog, please send me a note on what I could do better. The chart is printable. It should also be clickable so that you can go look at the settings.
We try to keep our articles informative and entertaining. Make sure you check out the other blog writer articles in Mailbag, Chartwatchers, Traders Journal, DecisonPoint, Don't Ignore This Chart, Chip Anderson, Scanning Technically, and The Canadian Technician. Subscribers have access to blog articles by Arthur Hill, John Murphy, Martin Pring as well as the DecisionPoint Tracker and DecisonPoint Reports. Don't forget to look for the subscribe button for RSS feeds and email.
On the Blogs tab, you can also see the Top Advisors Corner in the right hand panel where other technicians post their work. If you are paying for newsletters all over the Internet, don't miss all the articles here that are included!
For attending the next “Canadian Technician” Webinar, Please click here to register. The next one is Thursday, November 6, 2014 at 4:30 EST.Greg Schnell, CMT