The price quote manifestation of my “bullish precious/bearish equities” mantra on my iPad is simple: I want to see red quotes on the top (where equity index futures are shown) and green quotes on the bottom (where precious metals futures are). I’m getting something close to that this morning, with the /NQ down triple digits…….
……and palladium blasting higher by over 3%. Yay!
It’s not a clean sweep. As I’m typing this, the /RTY and /YM are up a tiny bit, to new lifetime highs, but precious metals are a wall of green. Gold, for example, is up over $60. More important than just the price quote, the action over the past couple of months has completed a well-formed cup with handle pattern, which should provoke a continuation of the bullish trend.
In turn, palladium has completed its own bullish pattern. I think it’s entirely possible we will push past the highs for the year before New Year’s Day.
Just to add more sauce to the recipe, volatility is on its deathbed, which to me means the time is ripe to hunt for overpriced stocks to short. The market is entirely asleep to the risk before it, and has priced volatility accordingly.
The big winner for me is palladium, however (by way of the PALL fund), since it’s been a bit exasperating and finally seems poised to play catch-up.
