First palladium, now platinum?

Platnuim broke out of an inverted head and shoulders pattern last week, printing fresh 52-week highs.

The bullish data points continue to roll in despite the waning strength in gold and silver.

Check it out!

From the Desk of Ian Culley @IanCulley

Our precious metals index is hitting fresh 52-week highs despite the waning strength in gold and silver.

Only three markets comprise the index. That leaves only one possible culprit – platinum!

First palladium, now platinum?

It doesn’t matter whether you consider platinum or palladium true precious metals. The industrious side of the family is chipping in, supporting a new structural uptrend for the entire space. 

Let’s check it out!

From the Desk of Kimmy Sokoloff

I think this market might be on hold till Big Tech earnings are behind us.

Time will tell.

From the Desk of Ian Culley @IanCulley

Our precious metals index is hitting fresh 52-week highs despite the waning strength in gold and silver.

Only three markets comprise the index. That leaves only one possible culprit – platinum!

First palladium, now platinum?

It doesn’t matter whether you consider platinum or palladium true precious metals. The industrious side of the family is chipping in, supporting a new structural uptrend for the entire space. 

Let’s check it out!

Before we dive into the levels…

Commercial hedgers are unwinding their net-long position after reaching extremes last year. Similar positioning in 2018 marked a key inflection point, resulting in a multi-year rally.

The bullish sentiment of commercial hedgers supports a sustained rally (much like the positioning in palladium).

Whether platinum catches higher in the coming weeks and months partially depends on a further unwind in commercial positioning. 

Remember, commitments of traders positioning reflects sentiment. It’s not a trade signal. But it does reveal critical aspects of the market environment. In this case, it’s...

In an effort to provide some much-needed portfolio diversification, I'm adding a delta-neutral credit spread to the mix.

There aren't a whole lot of juicy premiums out there (thank you plummeting $VIX!), but there is an ETF in a sector that looks set up for some sideways digestion over the near term that should play nice with a short Strangle.

P.S. We do trades like this regularly. If you'd like to leverage Best-in-Class technical analysis into smarter directional options trades, try out All Star Options Risk Free! Or give us a call to learn more: 323-421-7991.

The next new position in our Paid-to-Play portfolio is:

Today’s Hot List is a short one.

The most significant insider transaction is a 13D filed by Perceptive Advisors.

From the Desk of Kimmy Sokoloff

We have a big week ahead of us as far as earnings go.

The indices have been holding on for the past two weeks, but we've barely gone anywhere.

You want to talk about trends?

The biggest trend I see is that stocks keep going up in price, but investors are more pessimistic than ever.

I don't understand...

What are people so angry about? Why are they so scared?

Barron's latest Big Money poll shows that out of the 130 managers polled only 6% of their clients were bullish.

lol 6%?

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

From the Desk of Ian Culley @IanCulley

The increased selling pressure across grain markets might not be on your radar. 

But pay close attention: The soybean complex, corn, and wheat are edging toward their respective year-to-date lows as demand wanes. 

Even if you don’t trade these ag contracts, fresh multi-month lows – especially in wheat – carry broad implications for equities and cyclical assets. (Hint: It has to do with crude oil.) 

That’s why I’m on high alert for a potential breakdown in Chicago wheat…

Wheat has been in a strong downtrend since its March 2022 peak, entering a bearish momentum regime last summer.

Notice it's currently carving out a potential multi-month reversal pattern below a significant polarity zone.

But the bulls have their work cut out for them, as the bearish momentum profile suggests sellers are still in control of the market. 

When I take a closer look, I see a...

From the Desk of Kimmy Sokoloff

Today was monthly options expiration, and it was slim pickings.

Fridays are always hard to trade, as you can see below: not much movement.