Platinum and Palladium Leading the Charge

Charts courtesy of ino.com to allow a view of the action thru the time I am writing this. First up, platinum:



Next, here's palladium:



Both of these precious metals have been outperforming Gold and silver by a significant margin lately. The fact that both of these metals are making new highs for 2010 bodes well for Gold and silver over the intermediate term. A blow-off spike into the "silly" spring season wouldn't be surprising in platinum and/or palladium. I won't be playing, but this strength will draw "hot" money into the precious metals sector and is a positive sign for Gold and silver bulls.

Copper has also broken out to new highs for the year and oil looks like it is about to do so. This is likely telegraphing another short term price spike across the commodities sector as trader money rotates out of major market indices into tangible assets. In addition to the Gold and silver markets, I think agriculture is oversold in a major way. Here's a 19 month chart of RJA, a commodities ETF representing the agricultural sector, thru yesterday's close for those interested in the trade: