All Over for Housing Re-Inflation?
Both lumber and LEN face significant long-term channel resistance in the charts below. Is the Bernanke-inspired housing re-inflation run over for home-builders and housing in general?
Given Their Tight Correlation, Could Weakness in Lumber Prices Drag Housing Stocks Lower Too?
During the week of 8/18/12 lumber prices gapped open to start the week ~275 bps higher and at the time, were already up an astounding 38% YoY. Lumber is typically a rather subdued commodity so we thought the gap higher…...