Lumber breaks down again. This is a chart I have been posting since 2014. This time I added homebuilders and real estate which are more directly connected to lumber.
Are there futures?
Good stuff. I remember reading a Mclellan report a while ago with a chart of lumber futures and the homebuilders with a 1-year delay and they lined up extremely well (highly correlated with a lag). The idea was that lumber prices fall before homebuilders fall and rise before homebuilders rise. Same goes for the equity market probably.