So I keep noticing lumber related stocks going up, yet Lumber ($LUMBER) is not performing. First here is $LUMBER. Does this look like a chart generating breakout moves on lumber stocks? It did not to me.
Here is a look at a CandleGlance view of USA and Canadian Lumber related stocks. This includes a few paper stocks. You can look at the SCTR rankings and notice how many are near or above 75.
I don't have a reason for it, which makes me more cautious. There are a significant number of stocks moving into the top quartile. By the time its obvious its too late. I would definitely have a stop as I don't see the conditions to breakout but some of these are going vertical for 2 or 3 weeks. Some are up 30%!
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Greg Schnell, CMT
