From NFTRH 674…
If somebody can tell me how to effectively play Lumber I’d like to do so. A nice bottoming pattern taking shape here. Also an interesting forward macro indicator.
With the understanding that I am not a stock analyst by profession and do not spend the time analyzing them that a professional analyst would, a little research showed that the Lumber/Timber ETFs are generally full of REITs that manage and harvest timber properties.
Of those I reviewed, PCH has the chart pattern most similar to that of Lumber futures and indeed the company bills itself as the one most leveraged to the price of Lumber. So I’ve added it per the Trade Log.
I’ll keep this as long as the view of Lumber and reflation/inflation remains intact and/or as long as PCH holds the up trending SMA 200. The theoretical target of the pattern is around 61.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.