LUMBER Weekly Chart

Lumber is crashing -42% over the last four months. On Friday, 9/7/18, lumber hit limit-down at -3.8%. Lumber price, rather than percentage, triggers the limit-down. Lumber is down -7.1% last week. Housing and autos are the two major drivers of the economy. The auto industry may be at Peak Auto and has its own issues. A weaker housing sector can only lead to trouble ahead. The housing data has been lackluster and the homebuilders (XHB, LEN, PHM, KBH, DHI) are whacked lower this year.

The chart displays oversold RSI and stochastics which is agreeable to a bounce. There is also possie d with the RSI, histogram and stochastics as price collapses. However, the MACD line and money flow are weak and bleak so any bounce for a week or two will likely lead to further lower lows for lumber prices. The trade war with Canada is not helping since much of the US lumber comes from our friends in the north. A substantive bounce in lumber may occur when the US and Canada kiss and make up with a new NAFTA trade deal. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.