The Palladium Anomaly

Sol Palha

This is going to be a short and sweet article as I am doing it on the road. I am traveling along the east coast, collecting data on investor sentiment. My final stop will be Florida and in a few days I will release the data. Palladium went ballistic around 2001, hitting a high of 1000 dollars and then dropped like rock to 150. Since then it has been basing and has put in a lovely base formation.

While all the other precious metals were in nice upward trends, palladium was being pounded to death. Then while the other metals were in the process of topping it put in a bottom and now as they correct it has started to rally.

We at the Tactical Investor think that the dollar is set to rally and its first target is 90 (based on the USD index). While the dollar rallies, we expect Gold to take a breather and correct setting up the stage for the next powerful up move. While we are on the subject we expect also Silver and Platinum to start to correct. It is interesting to note that since we published our article the resurrection of the Dollar (www.financialsense.com/fsu/editorials/ti/2004/0116.html) it is already of its low. Palladium on the other hand is showing a completely different picture. The charts and our proprietary indicator Esoteric cycles are both issuing a strong buy and the targets we see indeed look very juicy. Most Palladium stocks are also in the overbought region so there are not many ways to play this. We however cannot reveal our strategies and price targets as this is reserved for our subscribers. But astute investors could use the information we have already provided to find the appropriate vehicles to take advantage of this potentially lucrative situation.

29 January 2004