Is Officer 1BDI losing an eye?
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?
Well, the support zone that I was referring to back in January is now broken, see this updated chart:
Poor Leela :(