Palladium & Dow - Sky High?


#1

I noticed a correlation between Palladium price chart and Dow Jones. They both look like unconfirmed Expanding Triangle.

Is a similar relationship between cycles in both charts?
(The same length relation between longer and shorter cycles - separately for Dow and separately for Palladium, developing in different time frames)

If that is true, we could forecast Palladium price based on Dow Jones, and later Dow Jones based on Palladium.

Also if you look at 2011, Palladium made price bottom exactly where Sentient Trader predicted the through to be in Dow Jones.

We use this correlation to pin through and peaks on Dow with more confidence.


#2

Waves in nature and the markets are HARMONICS, but it is not possible for us to distinguish between waves so that we have to use Hurst Nominal Model. It is the best I have seen so far. Although not perfect it works.

However, obvious patterns, we could possibly break into harmonics.
If you are really interested in market harmonics here is a link to Ray Tomes’ publication.

Great one !!!

There are many more, so explore his page http://ray.tomes.biz/alex.htm


#3

So are the spikes natural or man-made?

Here comes the heartbeat. Our body would never be able to produce strong enough electrical signal to contract the heart.
It uses harmonic vibration, where more than 21 harmonics are timed precisely to give the shock!

What is more, the shock is created by Minor waves not the major ones!


#4

amazing thank you, writing this down in my journal for sure


#5

Hi Gladitrader.

Nice workup. To my eye palladium and the Dow appear to have the same dominant frequencies. The amplitude modulation is a little different as well as the underlying trend, which is to be expected. The real question for me is what is the return on a palladium futures contract versus a Dow futures contract. The Dow is up about 70% since the 2016 low whereas palladium is up about 150% over the same period! Looks like you have given me something else to add to my trading portfolio. Thanks!

William


#6

I will not even comment.


#7

I would be scared to death this thing would go limit down while I was long. No one cares about liquidity during raging bull markets but it’s a different story when the turn happens quickly and violently.

Palladium is used primarily in catalytic converters so it is very economically sensitive. Any whiff of an economic slowdown this late in the cycle means trouble. Like Mr. T said in Rocky III, “I predict pain”.