As noted in the Trade Log, I added Palladium fund, PALL. The reasons are as follows.
First, is the positive seasonal aspect that we reviewed last weekend in NFTRH 687.
Second, the CoT structure, which shows Commercial traders, very short at the top, now very long and of course the large Specs doing the opposite. Now check out the little guy with ZERO interest and you can see that the traditional ‘dumb money’ is out and the ‘smart money’ is in.
Third, I believe the backdrop is still ‘cyclical inflation’, hawkish Fed or not. Palladium is used in the Automobile and Semiconductor industries, among others.
The Sprott Physical Platinum and Palladium Trust is trading at a 3.4% discount to NAV.
Then there is the chart of Pd, which has already hit and rebounded from the long-term support area that was our target for months before. I traded it once off that low but now with more macro information at hand I want to give it another, possibly longer shot. The weekly chart is still in a downtrend obviously (a daily may or may not be in a little bounce pattern, per the CoT chart above), so it is not yet actionable.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.