As you might have seen i have not traded for almost 4/5 weeks and there is a good reason behind it. When i saw the markets behaving erratically, every negative news being considered positive , iran issu/risk impact completely neglected ,focus on trade deal phase 1 (which aint even full of promises), tweets from trump and so on, i decided to sit back and just observe until i see a clear direction.
Coming back to palladium which i havent traded for almost 5 weeks now. My previous short went well and i took the profits and went out because it seemed like it will continue to go up and again lucky enough for me, i got it right.
I could have also bought it , but buying palladium at this price point can be extremely tricky.
One thing to look at , is the auto sales which is actually dropping around the world, and palladium is used mainly in the automotive domain as the catalyst. But with advent of EVs (which dont emit gases and thus doesnt need any catalytic convertors) and more more switch to hybrids and also the falling auto industry , i dont think this rally will be quite sustainable.
Verdict:
I am short on this bubble.
TP1 2000
TP2 1800
Coming back to palladium which i havent traded for almost 5 weeks now. My previous short went well and i took the profits and went out because it seemed like it will continue to go up and again lucky enough for me, i got it right.
I could have also bought it , but buying palladium at this price point can be extremely tricky.
One thing to look at , is the auto sales which is actually dropping around the world, and palladium is used mainly in the automotive domain as the catalyst. But with advent of EVs (which dont emit gases and thus doesnt need any catalytic convertors) and more more switch to hybrids and also the falling auto industry , i dont think this rally will be quite sustainable.
Verdict:
I am short on this bubble.
TP1 2000
TP2 1800