Posts Tagged ‘CSX’

“The Baltic Index Sliding to 1,500?”

Is the 33rd consecutive day of decline problematic?

The Baltic Dry Index fell for the 33rd consecutive day settling at 1790, a decline of 561 since the first of July.

CSX reported good numbers for the quarter yesterday. But the transporter of coal may find distress if the Index indicates a falling demand for dry bulk shipments to China.

It also appears that iron ore demand has declined in China. If, in fact, it is falling instead of just the addition of more ships them the BDI is an indicator of the slowing global economy. If the number of ships has increased then it is, obviously, a contra indicator of real shipping demand.

Either way, it is important to keep a watchful eye and be at least slightly fearful if it continues its precipitous fall!

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“The Shipping Blues”

U.S. Markets continue to flirt with 10,000 and 1,100, shrugging off the fundamentals.

Trader’s are looking to the future; to a global improvement that will justify the unrealistic rises in the indexes. But what happens if the future doesn’t exist? A vaporous dream of hope that disappears leaving everyone empty?

Third quarter earnings are a pivotal indicator and the hopes for a holiday season, better than last year, is almost palpable on the floor of the exchanges.

Many of my articles have been cynical of the perceived recovery, the health of banks, and the rise in the stock markets. Rather than cynicism I like to view it as realism. A common sense look at what is really happening.

With many indicators moving at hyper-speed it is increasingly difficult to keep up with all of the complex elements of the economy and what affect each will have on consumers, businesses, investors, policy, and the markets. Today we’re faced with rapidly changing information. As a result I spend too much time reading, digging, watching, analyzing, evaluating, and writing.

But everything I need to know for The Shipping Blues is found on the deep blue ocean, the hard steel rails, and endless ribbons of asphalt and cement stretching across terra firma.

The best indicator of the future economy is conceivably shipping. And right now many shipping companies have “The Shipping Blues.”

What are The Shipping Blues? Read the rest of this entry »

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