RE:Lumber up $10 today & the C$ down 29 cents.Undoubtedly, upward movement in the price of lumber will bode well for WEF.
However, I think WEF will be stuck in this range throughout September, at least until the market gets a sense of how much the Fed will taper. Personally, I don't think the Fed will taper significantly, as the US recovery is still fragile, but if the market senses a strong pullback from the Fed, then housing-related stocks could take a tumble. Remember, the Fed's purchase of mortgage backed securities helped kickstart the housing industry just over a year ago, precipitating a rush of new entrants into housing-related stocks.
We shall see - but again, my bet is that any Fed tapering will be mild, especially at this point in the recovery. But since the market hates uncertainty, I don't think there'll be any significant upward movement in WEF's stockprice until more clarity from the Fed comes through.
Myself, I'm still holding a slightly overweighted position in this stock, as I still see good upside potential over the next 12 to 18 months.
GLTA