Baltic Dry Index Stuck in a Holding Pattern

After an impressive rise (547%) off the lows of devastating decline (-94%), the Baltic Dry Index is currently stuck in a narrow range making lower highs and higher lows. With investors searching high and low for signs that the global economy is coming back to life, you can bet you'll be hearing about it if it breaks out to the upside.

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Comments

[Trend Surfer:]

Fundamentally, the rise in the index can be attributed to China's strategic move shore up its commodity reserves. Should this stop, there's a high likelihood that the index would drop.

Jun 30 06:25 PM

[sharpend:]

yeh the BDi is set to fall hard. Demand easing and huge over capacity issues

Jun 30 10:19 PM

[Old Trader:]

The other evening, I was reading a short article on Bloomberg that mentioned there was a large backlog at a major Aussie port for the shipping of coal (thermal). The "wait time" has more than doubled to over 14 days for a ship to be loaded....naturally, this ties up capacity, and is probably a partial explanation for the rise in the BDI.

Jul 01 05:31 PM