Back in July, I shared with you a chart of Market Distortion where I put together crude oil and platinum futures. I spotted a disruption of a strong correlation pattern between these two instruments that has been lasting for a quarter of a century.
That post drew your attention with strong support and feedback as readers shared their valuable comments. Below is the graph showing the distribution of your opinion on how the divergence would play out.
The majority of readers chose the option that implies the equal move in the opposite direction of both instruments to meet somewhere in between – crude oil should drop to $75 and platinum futures should rocket to $1,200. The second largest bet was on the widening gap.
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I prepared for you an updated chart below to see what happened after two months.
Source: TradingView
None of the bets have hit it right, although your main choice is still the closest. Indeed, the crude oil futures (black line) did its job fully to close the gap as it almost touched the $75 area. The lowest handle hit was $78 so far.
The counterpart, as it often happens in human relationships, did not meet the other part halfway. The platinum (green line) is still weak as it can’t raise its head to the upside.
Should crude oil do the job for both and drop even lower like a rock to catch up with the metal? Or is platinum quietly accumulating power for a rally?
Let us check the latter in the weekly chart of…
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