Anyone who is involved in the commodities market, even a little bit, has at least heard of Dennis Gartman if not his Gartman Letter, which discusses commodities in great detail. He has become a bit of a weather vane for the highly volatile commodities market. He has had the pulse on such commonly traded commodities like oil, gold and silver. However, this week on CNBC, he took to the air to discuss an upside trajectory he has noticed lately in a lightly regarded semiprecious metal that is actually important in industry.
"I took a look over the weekend," Gartman said on CNBC's "Fast Money" program this week. "I've been watching it for a while, but the chart pattern just jumped out at me, looking at palladium. ... I look at the chart pattern and thought, this has gone sideways for three and a half years, and now it looks like it is breaking out on the upside."
How does a metal like palladium suddenly take off like this? Gartman offered his take, saying it has to do with the auto industry.
"Palladium and platinum are the semiprecious metals used in catalytic converters," Gartman said. "The automobile sales otu of China really struck me. ... If gold does not give up the ghost, I think palladium has a chance to move several hundred point higher. The chart pattern has my interest, and the manner of which automobile sales are picking up, really has me interested."
He does have a warning about his advice: It's easy to get stuck in palladium. See the full video clip below to get Garman's entire report:
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