In today’s video, Cabot ETF Strategist’s Chief Analyst Kate Stalter discusses using smaller sector ETFs to take advantage of compelling macroeconomic conditions and “stories” to execute short- or intermediate-term trades during periods of high technical strength. She highlights the importance of treating the potentially volatile sector ETFs as trades, not long-term investments, especially for funds with lower liquidity or short/inverse strategies. Kate then explores the Aberdeen Standard Physical Palladium ETF (PALL), some of the industrial uses of palladium, and macro conditions causing a recent run-up in price (including conflict between top palladium produce Russia and Ukraine), before breaking down the chart. Finally, Kate examines a potential technical entry price based on the chart formation.
The ETF discussed in this video is for educational purposes only and should not be considered a recommendation.