Tuesday, May 13, 2008

Palladium Ready to Run Again

This from Jeff Clark at the Growth Stock Wire. I read this guy regularly and he tends to be spot on with his trading calls, so definitely worth paying attention to.


JustinC said...

Great call on cattle so far. The dollar rally will be brief in the opinion of many analysts, although 1.50 to the Euro and 1.75 to the pound is possible as near-term targets.

I've bet once on dollar yen and came off badly but lived to fight another day, heh.

I'm guessing you'll wait until palladium broke out of that triangle? It looks like the march upwards continues after that blip a while back. Have you considered just trading a basket of commodities?

SugarHigh said...

Thanks man, hopefully the cattle keep moving upwards. Brief respite so far this week.

Yeah I'll keep an eye on palladium - personally I would like to see it break up before buying.

Re: the basket - not really. It's a good option for people who want to just buy, hold, and not have to worry about it. I prefer to actively manage, as I think some commodities (meats and softs particularly) are going to outperform things that have moved already (energy, grains, etc)

JustinC said...

I think it's fair to say it has broken out now, looking at the ETF at least. Could be a fake so I'll wait.

Some odd behavior on the cotton ETF overnight (COTN.L). It spiked up to 2.500 from 2.415 and then back down, after falling all week. 3% up today.

SugarHigh said...

Agree with you man - I'm going to wait a bit also.

Cotton is strange man. Looks like it has some good support around 70, we'll see if it can get some legs.

JustinC said...

I hope so, it's my largest holding. Just 4% down now but I worry too much. I'm un-leveraged - new to this game and there are too many predictions of a commodities top floating around. I'll only exit cotton with a profit, just don't know if that'll be this year or later.

Looking at an ETF chart there was a spike in volume, normally around 300k it increased to 1,700k which must have produced the spike in the price. I'm guessing we'll see some gains next week but that's only a guess.

I watched a program on the BBC where they sent 5 kids who worked in the UK in fashion to India to work as cotton pickers - man, was that hard work. These kids hadn't done a days work in their lives and were working in stifling heat in the fields for 14 hours every day. They then had to sleep in a typical pickers' home. Glad we don't have smelly-vision.

They didn't last very long, but they'll look at their purchases a bit differently now. When I eventually make a profit in commodities I think I'll send a couple percent to a third World charity.

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