Eric in IL

Eagle, Navios, China Cosco: Welcome to the Bulk Shipping Boom

I read that China is churning through existing inventories and slowing imports on iron ore. The analyst thought this would last a few weeks, so I think the Baltic Indices should start to rebound in a month. The capesize index fell 15% today causing DRYS to fall 8%. If this continues, DRYS could see $50 soon.

Eagle, Navios, China Cosco: Welcome to the Bulk Shipping Boom

Well, I think it is dangerous to jump in when the rates have come so far, so fast. These rates make oil look stable/cheap. That is reflected with the low P/E. I would not be a buyer until I see the rates trend back up, because this could be a huge correction to the downside. I have concerns about how much upside there is on rates.

Eagle, Navios, China Cosco: Welcome to the Bulk Shipping Boom

Man, I must be tired, I also meant the BDI is overbought. RSI @ 90+ right now, trending downward.

Eagle, Navios, China Cosco: Welcome to the Bulk Shipping Boom

One correction, I meant buy at end of June.

Eagle, Navios, China Cosco: Welcome to the Bulk Shipping Boom

There will be a time for these, but picking a bottom can cost you 30% in these. I would look at the Baltic Shipping Indices to keep track of the trend. Look at the $BDI on stockcharts.com, way oversold, definitely not looking bullish near term. I would buy at end of July.