Why Lumber Is Important Even If You Don't Trade It

January 17th, 2013

by Chris Kimble

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Why would we want Lumber to do something different right now?

Over the past 20 years, every time lumber has hit the resistance line (1) in the chart below, it has fallen 50% in value … every time!

Lumber is back at the line again, right now !

At the same time lumber is at this key line, the DJ home construction index and IYR are at key levels too!

The last 50% decline in lumber, Home construction and Real Estate really suffered. Will it be different this time? Certainly housing isn't the same as during the bubble in 2006.

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From a technical perspective, however, I suspect we all want lumber to do something different this time!

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