In Baltic Dry, Global Trade: The Rally in Equities Isn't Real, I wrote: "The Baltic Dry Index (BDI) has been losing steam during this rally in equities. A sustainable trend changing rally in equities would be accompanied by an increase in BDI."
Well, despite a parabolic move in equities yesterday, the BDI actually DROPPED. AGAIN.
I will re-iterate: The shorts got squeezed. Hard. Yesterday the last of them panicked and hit the eject button. Don't mistake this for a new Bull market.
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2 comments:
Ben, do you, therefore, like SRS here (at approx. $51)?
I was wondering the same thing. SRS is at $55, looks attractive. Yesterday's huge down day was an aberration, I believe. Maybe Ben can lend some insight. But there were two strong up days on the 19th and 20th, bounced off the $48 december low, closed near its high for the day, and we're seeing strong volume. Any thoughts?
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