In last week's issue of "Market Commentary," I noted the following:
. ". this is a market in search of a direction and until a trend is clearly
established, more volatility can be expected."
. ".don't be surprised by more near-term wide price fluctuation. In my opinion,
holding the support near $350-355 is critical; a break below there could
trigger stop-loss selling."
. ".it is becoming more and more likely that the trading range activity is over
and a big move, one way or the other is in the offing."
. ".thinly traded markets like palladium can experience swift and borderline
"seismic" momentum shifts. Market activity should be monitored closely."
I guess you could say I made four attempts to say basically the same thing:
"Look out for a big change." As it turned out, the breakdown of support near
$350 was the key development in last week's trading. The borderline "seismic"
sell-off that ensued has probably given the market some of the direction it
appeared to be seeking; in my opinion, the near-term bias is now to the
downside and additional forays into the $315 to $335 support range are likely.
New positions should be considered on any price weakness that might visit the
$315 to $320 range; otherwise, clients are advised to stand aside...
