Lumber entering a Buy range

A year ago I was writing about the parabolic price move in Lumber and since then I’ve spoken at various events about the importance of ‘honouring’ or respecting that parabolas are followed by a regression to the mean.

Of course, you can always pick the ‘mean’ which suits your story.

Mean reversions following parabolic moves are also good for shaking out the un-natural owners of an asset, commodity or token, perhaps.

Lumber has fallen 72% since its mid-May 2021 high.

Perhaps many should ask their homebuilder if the construction quote is any cheaper now?

Even so, Lumber may be at a price where it’s safer to buy.

Another 2% lower should do it, $461 looks like a good entry point.

August 17, 2021

by Rob Zdravevski

rob@robzdravevski

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