The Baltic Dry Index Continues to soar following my call for a breakout at 3,200ish (July 2021). I think the BDI remains a good indicator right now for a few reasons:
1. From a technical perspective, it is behaving exactly as expected (hence the call from 3,200 - it was an easy read) 2. The breakout and move higher is consistent with a bottleneck in global shipping 3. The #bullish price action is yet another harmonious variable in my view of the global macro repricing; although I am still treating the idea of "re-pricing" as a theory.
I am going to not this as a continued long until we reach the 4,700 threshold; at that point, we can reassess.
@Earthmatrix,I am not sure. I would be surprised if we did not get a pullback to the 4,700 area. One really important thing to consider: there are only so many ships out there. With ports apparently operating below capacity, the bottleneck could stall new orders.