A Tale of 2 Metals: Buy One. Sell the Other.

I have the perfect metals trade for you today. If everything plays out as it should, you could walk away with tremendous gains by simply buying one metal and selling another.

You’ll see what I mean in just a minute. But first, you need to be aware of a major breakdown happening in the markets right now.

This breakdown doesn’t involve stocks — but it could quickly signal a breakdown of some of the world’s most vulnerable emerging markets.

I’m talking about copper…

Yesterday afternoon, copper futures abruptly dropped below $3 for the first time since 2010. Chinese stocks, which have strong correlations to copper, are in the red. Even though Dr. Copper hasn’t been a great barometer for U.S. stocks over the past couple of years, it still holds sway in Asia.

That’s the bad news. Sell copper. It could easily move lower from here.

However, there is one metal you can buy right now that’s primed for massive gains: palladium.

Back in early December, I told you palladium was only one metal you needed to buy. Judging by its recent breakout, this idea holds true today. Palladium is useful (it’s a key component in catalytic converters for the auto industry). And even more importantly, this forgotten precious metal has even managed to buck the downtrend that punished gold and silver in 2013.

Palladium is up more than 7% so far in 2014. Compare that to the paltry 1% gains offered by the broad market so far this year and you’ll understand why I like this trade so much…

Positive Palladium Price Trend vs. Negative Copper Price TrendRegards,

Greg Guenthner
for The Daily Reckoning

P.S. In today’s issue of The Rude Awakening I gave readers a chance to discover my favorite way to play the palladium trend (hint: it’s a play you can buy cheaply on the stock market). If you didn’t get it, you may have missed out. But don’t worry… I’ll be back tomorrow (and every trading day) with more chances to discover several great profit opportunities. Sign up for FREE, right here, to make sure you receive them.

The Daily Reckoning