Wednesday, May 29, 2013

Lumber Still Down, Homebuilders Still Up



I wonder if the relationship that has seemed to hold will reassert itself. And if you are asking the question, I am contemplating taking the short side on the homebuilders here.

a 3-year chart.


Or a longer-term perspective


Just an FYI, the contract volume on the lumber futures have been accelerating on the downside. Someone whats out of their positions.

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