Why lumber spiked...

Discussion in 'Trading' started by kmiklas, Oct 27, 2021.

  1. kmiklas

    kmiklas

    I figured out the reason behind the dramatic spike in lumber:

    They needed plywood to board up all the empty spaces in the cities!

    :p

    Aren't I funny?

    My friend, heavily involved and invested in urban REITs, did not find it funny at all.
     
    Last edited: Oct 27, 2021
    maxinger, comagnum and twstn like this.
  2. maxinger

    maxinger

    huh?

    Lumber futures prices spiked down massively from 1700 to 640.

    So I think
    because it is so cheap, people started to use plywood to board up all the empty spaces in the cities
     
    Last edited: Oct 27, 2021
    kmiklas likes this.
  3. Handle123

    Handle123

    Am still long Nov Lumber, at recent highs added short Jan Lumber as topping formation formed as was to hedge, Lumber don't have options. Waiting for approx 640 to add then lift short hedge and use stock options to hedge Lumber add on if happens.

    Crude oil hedged as gone too far, waiting for 4-5 buck pullback to add/hedge.

    Long term commodities been very active this year and fun. I have shut down 6 scalping systems to apply more funds to long term commodities and stocks options. Starting to close some long term stock positions as dividends not making it worth to keep and get better return in commodities and stocks options. Sometime next year will shift 60% of stocks to commodities and options.

    I find amusing when I first started trading was told never do commodities or options as they were hardest to trade. I will always keep good paying dividend stocks and hedge at turns.