ETFS Physical Platinum Shares (PPLT-N)

Likes precious metals currently. Likes direction of chart. Will continue to own in portfolio. Is good option for "risky/aggressive" investors. Overall theme of strong commodity up trend. 

Chart indicating low on the trend. Good time to buy. Would recommend to investors. Current share price has a level of support. Once stock reaches $90, will see. Tradable stock, not a good long term investment. 

(A Top Pick Jan 20/17. Down 3%.) The intention here is to own platinum right through until the end of April. This is because platinum is used in catalytic converters. Coming into the car season, there is greater demand expected for platinum. If you own, what do you do now? The answer is, stick with it and buy some more. The interest in the auto industry and catalytic converters is growing.

Platinum is an industrial and precious metal and has done well since the beginning of the year. This is a seasonable time for Platinum. The seasonal period starts in January and runs as long as May, but most of the gains are in the first couple of months. If you see it pull back, then exit.

Platinum is used for catalytic converters in cars, and we are just about to go into the auto buying season. Also, platinum is a precious metal, and they do very well at this particular time. Historically the best time to own platinum is from the beginning of January right through until probably March. The chart shows that this has already started bottoming out now and is showing an upward trend. There is a pretty good chance you will get a shot at the high of $110.

(A Top Pick Feb 12/16. Up 3.56%.) (Recommended 2 weeks ago that profits should be taken.) This one is normally a seasonal trade from around the end of November right through until the last week of April.

The platinum was a bit of a surprise this year. Seasonal strength is from the middle of December right through until around the end of April. This year we didn’t get the actual move until around the end of January. The reason for the strength is the way platinum is used. It is used in the auto industry for catalytic converters. More autos are being sold this year than last year. We are expecting to have a record crowd at the auto sales tradeshows this week. A very interesting trade technically, fundamentally and seasonally.

(A Top Pick Jan 19/15. Down 9.05%.) The story here is that seasonality does not work all of the time. The key is to protect yourself when it doesn’t work, so watch the technical indicators. What happened in this case is that the US$ took off and virtually eliminated all the potential return from platinum.

Late December until April of each year is the period of seasonal strength. The average is 12% upside. Demand for platinum is increasing because of catalytic convertors. Fuel cells in cars is starting to trend and creates demand for platinum. It completed a beautiful double bottom pattern.

Usually does well from middle of Dec. until the end of Feb. Found resistance at a previous resistance level. If you get above the previous resistance then you have a reverse head and shoulders pattern which is the best kind of pattern you could have. Hang in and possibly buy some more. Fundamentally they are having troubles in South Africa with a strike where half of the world’s production comes from.

Coming into the spring buying season for automobiles of March, April and May. Tends to benefit before that, from December all the way through to May. We are already starting to see some strength where it tended to outperform the market. On the technical side, there is some resistance with a chart showing a negative trend line, and you want to see it break above that. Looks very promising here.