Sunday, June 21, 2015

BDI Baltic Dry Index Weekly Chart

The Baltic Dry Index is an excellent indicator of the global economy as grains, ores, powders, resins and other materials are shipped across the ocean and the demand sends shipping rates higher and the BDI into the thousands and higher. That is not happening. Thus, the global economy is sick. The BDI topped out in late 2013 that was highlighted by Keystone at the time due to the negative divergence (red lines). The BDI has languished ever since. The Fed, BOJ, ECB, BOE, PBOC and other global central bankers as many as 14 key countries this year and more, are pumping stock markets higher by debasing their currencies. Higher stock markets do not reflect a successful economy but instead reflect obscene Keynesian money printing that has gone on for over six years.

The BDI was beaten down so low it had to perform a dead-cat bounce with possie d (green lines) helping to provide a boost. Shipping activity should stabilize from here on out so the shipping stocks can be explored for potential long plays. There is very little stocks of interest on the long side in the market these days but the shippers are worth a look. The sub 1000 BDI verifies a sick global economy and the gains in stocks, that serve to make the wealthy filthy rich at the expense of the middle class and poor, are purely a function of global central banker money printing. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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