Sunday, December 27, 2015

BDI Baltic Dry Index Weekly Chart

The Baltic Dry Index remains at record lows. The falling wedge pattern, positive divergence and oversold conditions should bounce price higher. The BDI is so far down that up is the only way it can go; even if it is only a dead cat bounce. Price is under the moving averages requiring a mean reversion higher. The crashed Baltic indicates a lack of need of raw materials such as iron ore and coal. In addition, China's economy is slowing with less need for commodities.

Any other time, a low Baltic Dry Index would occur in concert with a weak stock market. But in today's central banker controlled markets, money printing keeps the stock markets afloat. The record-setting low BDI confirms a global slowdown in progress. 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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