Palladium Clock Adds a Tick and a Tock

This weekend I discussed the potential for a melt-up top in palladium with a run towards the $3000 to $3150 area. I didn't expect it would take off right away, as the prior tops in 1980 and 2001 took 2 months and 12 months, respectively. Yet begin immediately it did, with palladium jumping 8.8 percent on Tuesday. Palladium has rallied again as of Wednesday morning. It is off the high for the day, but from the intraday high of $2842.50, the $3150 target is slightly more than 10 percent away. Palladium could top as early as this week.

The 1980 top came at the end of a major commodities bull market and the 2001 top came at the end of a major equities bull market, and this top is coming in the midst of an historic bull market in equities and bonds.