Update: Palladium Still Calling Tech & Palladium Top

Palladium peaked in 1980 with commodities and in 20001 with technology stocks. Palladium is still near both the 1980 resistance line (red) and the 2001 resistance line (blue). It last hit the blue line in February 2020, after the pandemic officially hit global markets. It hit again in May. I didn't take it as advice, but had you taken the failure on May 10 as the signal to short commodities, you would have nailed the top in many of the mining shares (Edit: and lumber). Back in 2020, palladium was shurgging off coronavirus along with much of the market and I wondered, having gone short the broader market and related sectors such as energy in late January and into February, if the market would entirely shrug it off amid bullish sentiment. It didn't. It ended up peaking a tad below $2900 without reaching the $3150 resistance set by the 1980 and 2000 highs.

While commodities could sell of with palladium and the broader stock market in the short- and intermediate-term, the corrollary I'm expecting is 2001, not 1980. Palladium experienced a lonely bull market in a mostly bearish period for commodities, as it did in the 1990s.

Update: Wanted to note that palladium looked like it peaked in 2000 in February, but would produce an overthrtow bull trap into early 2001.

Update II: Didn't look at volume before, but it is far below pre-covid levels. Not sure if there's an explanation for that.

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