Those that view the message of the market on a daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.
PALL's primary trend is UP and under triple upside alignment. The triple alignment forces traders to chase across multiple time frames. This adds power to the impulse. The impulse won't last forever, but as long as the primary trend is young, the rally could continue with several more resets. PALL's BuST = -0.49, so the impulse has yet to reach its cycle mean.
Palladium's energy is bearish and the ProIndex is ticking higher but shows overwhelming support from professionals. It's a public driven rally. DI = -67% creates another weak blocking dome. It should slow the advance.
Make no mistake about it, the trend is bullish for palladium. It's not overwhelming bullish because the primary trend is 11 months old. What do you expect? Wildly bullish after 11 months. That's not how it works. If palladium's primary trend remains up for 20 to 24 months, it won't be easy. It will likely be a public driven event that should increasing amounts of bearish energy opposing it.
In the end, the disciplined trader will sell because TIME expires. If the primary trend lasts another year, it will be extremely old. Only the fools ignorant of time will be bullish.
Palladium DI
Palladium ProIndex
