Economic data has been so upbeat in the last few days that economists are pondering an almost-unthinkable question: Could there even be signs of life in the zombie housing sector?
In this business anything is possibly over the short-term. However, almost all spin/MOPE fades without the support of money.
Money continues to fade or bet against a housing market. As the price of lumber has risen, commercial traders have aggressively shorted it across multiple time frames. Such actions could be interpreted as supply/demand related activities, but it's persistence over time weakens that interpretation .
COT Money Flow Lower Table:
Lumber Futures Continuous Contract and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:
Source: marketwatch.com
