Palladium is coming up into an area of potentially strong resistance at the level it hit a few years ago, near $580. I expect a sharp pullback to the 50 day moving average around $460 could be imminent. No one has been more bullish on palladium than me, and I remain a longer term bull, but the short term signals are getting frothy. We need a shakeout.
"Da Boyz"--aka the option market makers, will probably try to close PAL at or near $5 so the most numerous call/put option at the $5 strike will expire worthless. I sold my call options Thursday, both on my palladium price correction thesis, and my expectation that PAL could settle near the closest strike at $5 based upon what the options market makers do month after month.