October platinum followed the stock market up early in today’s session and closed just above its new short term pivot point of $1560. That’s good to know but in puny markets that only trade three to four thousand lots a day these little price points and resistance levels can be blasted through like they never existed. My gut tells me there is a big surprise move in store for platinum and I think it is going to be to the upside.

While still very vulnerable to corrections following the S&P platinum isn’t going anywhere, up or down, without gold. If gold breaks out to new highs platinum has a lot of catching up to do regardless of weak auto demand and the horrible economic outlook. While historical anomalies are possible the likelihood is small that gold and platinum will delink and go their separate ways.

Palladium broke through its weekly resistance and is heading for its April 2010 highs. Silver also has nowhere to go but up. It is leading the way for the metals. The only laggard is platinum.

Barring a big volatility event platinum is a market that doesn’t know what it wants. Does it want to dance with gold or the S&P? It is like an actor playing two parts, both the boy and the girl. I think platinum will consolidate sideways for a while longer. The short covering rally should continue to $1600.

Oct platinum $1,561.10, up $9.60; Range $1,547.30-$1,566.70

Dec palladium $531.45, up $6.20; Range $522.60-$533.65

Dec gold $1,251.10, down $2.30; Range $1,239.20-$1,255.60

Dec silver $19.490, up 27.7 cents; Range $19.505-$19.975