More on Dr. Lumber

It was just a few days ago I showed you the new Doctor in town, not Dr. Copper, but Doctor Lumber and showed you what has happened vs. the SPX.

I was forwarded this article this morning that deals with several issues that CNBC has been pushing like stuffed Teddy Bears at the Carnival, namely homebuilders and the "Recovery in housing".

There's some good information here I didn't cover, but the thrust of the article that was written yesterday (after we had already seen Doctor Lumber's warning). The article starts off and then the first bold print is in this statement...

"However, there is one eye-opening concern that does not support Chairman Bernanke's position about a housing recovery, and unfortunately points to less demand in the immediate future.  While many investors do not track lumber prices, the chart below demonstrates the sheer bear market that has befallen lumber futures prices."

Here's the rest of the article from BigTrends, perhaps some weekend reading and further proof that while it may not make the market swing intraday, when we look back, it will look very obvious and everyone will be a genius pointing to this data, but few are willing to consider it when it matters most. I hope you consider it.