Historical levels of commercial accumulation presents extreme buying opportunity for Palladium

In this article I want to show you how you can trade side by side with the true trading powerhouses of the market.

Palladium is what we call a “finite market”.

Let me explain:?

The lifespan of a commodity like Palladium is quite short. It goes from producers to users, and then it’s all over. Sugar and cacao are made into chocolate, Wheat is made into flour, Gold and Silver are used for computer chips or nice jewelry.?

The key players for those commodities are exactly these people. The so-called commercials, the users, and producers of commodities. These are the institutional powerhouses of the marketplace, so powerful they are required, by law, to report their buying and selling actives once every week.

The Commercials are institutional superpowers.

·??????They have the best research analysts on staff.

·??????They are the biggest and smartest participant in the game.

·??????We can learn to understand what their actions in the market mean and align ourselves with them.

That is what the Campus COT Indicators are all about. Making sure we trade side by side with these true trading powerhouses.

?Now, let’s move to the chart below: What you can see is the Palladium chart from 2000 to today. Below the Palladium chart you can see two Campus indicators which represent the buying and selling of two distinct participants in the market.

The blue line represents the users and producers of Palladium. They are the so-called commercials. They are in fact at historical levels of accumulation / buying. What does that mean? Well, ask yourself the following, if the users and producers, the ones that are moving millions of dollars of real product, the ones that have the best analysts on staff, if they are buying at levels that they have NEVER done before, what does that mean?

Well, all I can say is this: This is the most bullish reading I have ever seen for Palladium.

I am writing this article today because I am pulling out my hair a little bit here because the retailer, the public, the uneducated traders (represented with the red line) they are selling at multiyear extremes. Meaning they are the most bearish or fearful they have been in years.

I have seen estimates from brokers that state between 80-90% of this group are net losers. The problem is that they are hardwired to buy at market highs and to sell at market lows. Their instinctual buying and selling behavior are to buy after a large rally and to sell after a large decline. What you must do is reprogram yourselves to avoid buying when they are buying and avoid selling when they are selling.

In fact, you must learn to do the exact opposite of the retailers. When they are bearish we look to go long and when they are bullish we look to go short.