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Remember a few weeks ago, when the Baltic Dry Index was on the ropes?

Well, it's off the ropes - and in complete freefall. Support has NOT held for the BDI, a favorite leading indicator of many investors. And one, might I add, that has performed quite well since the equity markets topped in 2007 (in '09, the BDI turned up 3 months before stocks).

The short term prediction appears to be PAIN, as shipping rates plummet. Apparently not as much to ship as the global economy heads for a wicked "double dip"...

click to enlarge

Baltic Dry Index Chart July 2010

The Baltic Dry Index is in free fall...this is probably not a good sign for the global economy.

(Source: StockCharts.com)

Yet another reason to get OUT of stocks. Or, if you're feeling a bit frisky, you may want to consider shorting the S&P 500 (especially at the top of this mini-rally).

Disclosure: Long SDS

Source: Look Out Below: The Baltic Dry Index Is in Freefall