I’ve purchased a few lumber contracts through my futures broker over the past week or so in the $215 level. Lumber has been oversold in the short term and has reached a major resistance at these levels. The economy cannot begin to move forward until the housing market officially rebounds. Lumber prices will lead the charge in the rebound. This is a short term play on a solid rebound in lumber prices over the coming weeks.

Speculation should only be done with a small percentage of your portfolio

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