Builder boom could be kicking back into gear with Lumber breakout

Technical Strategy Video (Recorded Wednesday, October 13th):

Key Takeaways

  • Home construction and Builder stocks look to be turning back higher, with convincing movement back to new all-time highs in LOW, BLDR, while XHB has stabilized and readying for its own breakout
  • Lumber has shown good correlation with XHB, the Homebuilders ETF in recent years, both having peaked out this past Spring. Lumber now breaking back out higher.
  • Lumber cycles which peaked in the spring now bottom in October and turn higher into December of this year. It’s thought that Builders should benefit from this rally
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