Conclusion, Investment Implications, Strategy
The Invesco MSCI Global Timber ETF (CUT) is currently in the midst of a November 2023 major uptrend while recently breaking a major overhead resistance level at 34.16. Meanwhile, the total net assets invested in CUT are in an Aug 19th trend of monthly expansion while CUT is also starting to outperform the benchmark S&P 500 on a quarterly basis. Together, these factors establish favorable conditions for more outright strength and relative outperformance from lumber prices and related assets.
CUT Trending Higher Amid Expanding Assets & Relative Outperformance Versus Stocks
The upper panel of Chart 1 below shows that the Invesco MSCI Global Timber ETF (CUT) is in the midst of a November 2023 major uptrend as defined by its 200-day moving average, a trend that was most recently tested and held on Aug 5th. The middle panel shows that the total net assets invested in CUT (AUM) are in the midst of an Aug 19th trend of monthly expansion. Expanding assets indicate bullish conviction in higher prices. The lower panel shows that CUT is testing, and appears to be in the early states of reversing, its April trend of Strategic (quarterly) relative underperformance versus the benchmark S&P 500 (SPX).
As long as these three conditions remain true, the price of CUT is likely to continue moving higher in the weeks ahead.
Chart 1
Current Sector & Industry Group Ideas
Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.
Table 1
Click the table to make it larger