The Baltic Dry Index measures the rise or fall of fees charged by shippers to move raw material. Why would shippers feel they could charge more unless things were improving?
The shipping company stock charts are trending up on those higher fees.
Charts are unemotional, unbiased, non-opinionated… real money moving in and out leaves a trail shown on the charts as a trend. What do we see?
You cannot see my grimace as I smack the keyboard with bandaged paws. My bear paws were burned, stomped on, and gored by bulls that frankly I thought were running solely on Fed supplied hopium. How else could we explain so many “V” bounces in the last three years?
In the end, does it matter why it happened? I think most market participants will point to the Fed and zero interest rates; the end result was too many too hot to handle flaming “V” bounces.
At this point, however, I want to explain why, when these bandages come off, I hope I’ve morphed and see hooves rather than paws.
See the full article at SeekingAlpha.com.