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Is Officer 1BDI losing an eye?

Recs

9

July 08, 2010 – Comments (2)

If everyone is seeing a global recovery, the Baltic Dry Index sure isn't. I have written about the BDI a few times (This is Officer 1BDI, Requesting Backup. and If the BDI is a Leading Indicator ...).

Here were my observations and chart from the last post:

This week it confirmed the downtrend by breaking through its first small support. Larger support lies just a little bit below that. If the next support is broken ... look out below.

Additionally, I am continuing with the "Leading Indicator" pun for the BDI. Some still maintain that it is a leading indicator (which is debatable), yet it began its turn down nearly 2 months before the current correction in the equity market. So again I ask, if it is a leading indicator, what direction does it seem to be forecasting?




ENLARGE

Well, the support zone that I was referring to back in January is now broken, see this updated chart:



ENLARGE

Poor Leela :(

2 Comments – Post Your Own

#1) On July 08, 2010 at 11:37 AM, blesto (30.90) wrote:

In my interpretation of your chart I believe point C is the #5 point at the peak of an Elliot Wave and now looking at 2 steps back. Wherever this next plunge stops and starts to go back up might be a beginning of a new wave. Wherever she stops, nobody knows!  ;/

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#2) On July 08, 2010 at 12:29 PM, binve (< 20) wrote:

blesto,

Fair enough, that is a possible interpretation. These wave forms are not very clear and there is some ambiguity. But whatever the count, that support break is a big deal and is forecasting some weakness.

Thanks for the comment!..

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