Saturday, March 31, 2012

"Lumber Says This Is A Top For Housing Stocks" (ITB; XHB)

From McClellen Financial:
Chart In Focus

March 30, 2012
Here is an update to an article I posted in September 2011, describing the leading indication that lumber prices give for the shares of housing related stocks.  Back then, it was saying that a rally was ahead for homebuilders, building materials providers, and others involved in the housing industry.  And that opinion ran contrary to what was being voiced back then by a lot of other analysts.

Now the commentary I hear on the business TV channels seems largely bullish toward housing stocks.  They cite the growing economy, falling unemployment, rising rental prices, and other factors that should benefit the housing sector....MORE
HT: History Squared

ITB and XHB are homebuilder ETF's. Since their October lows they are both up dramatically. Via Yahoo:
Chart foriShares Dow Jones US Home Construction (ITB)