Chris Lau - Seeking Alpha

Wednesday, March 11, 2009

Why Platinum?

Don Vialoux, a technical analyst I follow, appeared on Below is a highlight of his picks. The video links are below.

"The Claymore Oil Sands ETF is benefiting from strength in crude oil prices, up over 30% from their late December lows. Technically, units appear to be forming a double bottom pattern with support near $9.50. Seasonal influences are positive until the end of May. Target price is $14.

The Platinum ETF is benefiting from growing demand in the Far East where auto sales and production are rising (Platinum is used in catalytic converters). Technically, Platinum has established an intermediate uptrend. Strength relative to gold and other precious metals is positive. Seasonal strength continues until May. Target price is $33 U.S.

The Claymore BRIC ETF tracks the equity markets of Brazil, Russia, India and China. The Chinese equity market has established an intermediate uptrend in response to its economic stimulation program. The Chinese are buyers of commodities such as copper and crude oil. Brazil and Russia are selling these commodities to China. Seasonal influences on BRIC equity markets are positive until May. Target price is $20.00."

This entry is not a solicitation or advice to buy the above securities. It is best to listen to the rationale behind the recommendations.