Get the Latest Investment Ideas Delivered Straight to Your Inbox.

DSI Says Palladium Approaching a Sell, and DSI Is on Sale
Contributed Opinion

Source:

Bob Moriarty Bob Moriarty of 321gold takes a look at the Daily Sentiment Index for palladium.

The price of palladium has been on a tear lately.

moriarty12-19

Like every other investor I would love it if every one of my investments went up day after day. But it never seems to happen for me. Actually, in real life, the more days something goes up and the faster it goes up, the greater the risk of a back breaking crash. Palladium prices are up 50% in just over six months. That's a lot, regardless of supply or demand.

No one wants to learn from this but prices of commodities or stocks have not nearly as much to do with supply and demand as does plain old human nature. You see, we are herd animals and we want to be safe, so we travel with the herd. But if you have ever watched the life span of a sheep or cow or pig, they all end up in the slaughterhouse. They get chopped up and then eaten. If you want to invest with the herd. . .well, good luck with that.

There is a good alternative that takes the very human behavior of buying at tops and selling at bottoms into account. It's called the DSI, for Daily Sentiment Index. I've written a bunch of articles about it and made about 30 predictions of prices about to make a U-turn. All 30 did and that's not bad. I'd love to say that it was all because I am so smart, but it's simply not true. You have the same access to the data that will warn you as I do. It's currently warning that palladium is looking for a top. Maybe not today or tomorrow, but soon. Palladium likes to wander around for sometimes a month or so with nosebleed readings before taking a tumble.

The DSI for palladium has been in excess of 80 for about three weeks. It hit 93 two days ago and settled at 92 on Dec. 16. Very soon now it will top and crash. If you have a subscription to the DSI look for a reading of 95 or above and then get out of the way of the falling safe. If you don't have a subscription to the DSI, look for another couple of blistering days higher. And it you would like an advantage over the flock of sheep following the metals led by a bunch of parrots, consider a year's subscription to the DSI. It's on sale until the end of December.

I don't get anything out of this other than he has comped me the service for the last couple of years. If you don't find it one of the most valuable tools you have ever been handed after you use it for some time, write me and I will patiently listen to you whine and I will pat your back for you.

Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

[NLINSERT]

Disclosure:
1) Statements and opinions expressed are the opinions of Bob Moriarty and not of Streetwise Reports or its officers. Bob Moriarty is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Bob Moriarty was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Charts and graphics provided by the author.

Want to read more about PGM - Platinum Group Metals investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe