Lumber

anyone following this market?


relative valuation at all time low and aggressive swing from net short by the commercials to long.
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Also had biggish day Friday.

Chart has just made a classic symetrical triangle.

Today was the first break out day hopefully more to follow.

any SBs offer access to this asset class?

You can use IGindex to spreadbet lumber, their spreads are bound to be wide on this one though

jhaughey said:

You can use IGindex to spreadbet lumber, their spreads are bound to be wide on this one though

Click to expand...

Sept 05 contract buy @ 33570, sell @ 33410 on IG

spread

jhaughey said:

You can use IGindex to spreadbet lumber, their spreads are bound to be wide on this one though

Click to expand...

160 ticks, spread. watch the leverage as they have not used any decimal points.

I just closed a sep 05 long at 33690 for +300 ticks on Near open last Friday as it traded down from 33900 a gap open, so watched it close the window as the say in candlesticks or minding the Gap, over here.

It was classic pendant formation and I managed to catch a small Breakout Thursday and Friday early. However Fridays action trading down was a concern short term still think this one could build for further upside. Just factor in 80 ticks in and out on your moneymanagement and stops. Good luck

In my experience Lumber is a market that has more slippage than it is possible to account for. Sometimes you will get to end of day and there are only a couple of locals making very thin markets with a huge spread. I did have a "bombproof" lumber system but unfortunately it was totally untradable. Good luck to anybody who can be consistently profitable in this one.