Monday, December 14, 2009

The Baltic Dry Index & The Golden Mean

The Baltic Dry Index (BDIY) measures the demand for shipping capacity versus the supply of dry bulk carriers. Because the demand for shipping varies with the amount of cargo that is being traded or moved in various markets this index can be a good proxy of economic activity.
As can be seen in the chart below (click for larger image), the index reached its record high level of 11793 May 20th 2008. and hit a low at 663 on Dec 5th 2008. The Index has rebounded to 4661 on November 19th of this year.

Several Fibonnaci harmonics--both time and price and tXp come into play in the current time frame. Like the Visa shares mentioned last week, the BDIY warrants attention as it could be a harbinger of future market activity.

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