Lumber Technical Chart
Eric De Groot | Oct 19, 2016 02:38AM ET
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the bagholders of trend transitions.
Lumber's focused bull opportunity has produced a 13% annualized return for the bulls since the second week of March (see $Lumber Matrix). This opp recorded 397% annualized return after the second week of March. Disciplined bulls that booked profits and reduced risk in March are letting their profits run while watching TIME.
Smart money, a small majority remains comfortably bullish.
Lumber Matrix
A weekly close above resistance from 338.70 to 342.30 supports the up impulse, while a close below the January 2015 gap from 295 to 302.4 could reverse it. A reversal favors testing of lower support.
Lumber, a market generally ignored by traders, is profitable for both the bulls and bears. It's certainly a market to be followed.
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