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If this Commodities Chart is Real Today will be Interesting

Every morning the ritual of a quick scan of every market is something yours truly attempts to perform to see if there are any new anomalies for review to see if “the moment” has arrived. While equity futures are bleh this morning as the world starts to shut down again, one chart in particular caught my attention:

A 75% drop in prices overnight? I am hoping this is a fat finger trade or a system error on data received by Investing.com but it is not unheard of.

Stay tuned because this could be nothing, or it could be the start of something bigger. Because the truth is, lumber is starting to pile up at the yards as reported last month with 49% of lumber yards reporting excess inventory:

Lumber now piling up for manufacturers

And the information my customers report is confirming this as certain types of lumber are now being offered at huge discounts compared to prices six months and one year ago. If lumber prices are going to crash and burn, this is as good as any time to do it and a strong indicator that the home building market is not too much further behind.

I guess reality will hit when the CME futures open so buckle up.

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