Short Squeeze among Dry Bulk Shippers? ($DSX, $GNK)

The following chart shows the recent performance of the Baltic Dry Index, which is a composite of several indices that track the daily shipping rates for dry bulk ships of various sizes.

As we see, the BDI has had a rough 2012 so far. After quite a run up in Q4, it tanked to its lowest level in 26 years. Given what we know about what the . . .

→ Read More: Short Squeeze among Dry Bulk Shippers? ($DSX, $GNK)

Don’t Look Now, But the BDI is Cratering

The Baltic Dry Index is a measure of the shipping rates of dry goods, aggregating its constituent indexes like the Baltic Capesize Index, or the Baltic Supramax Index, which refer to various classes (sizes) of dry bulk carriers. Though it is not a perfect indicator of the economy (what is?), it has been found to be an above-average leading indicator.

Well, we have a problem in the BDI. It has closed down 27 days in a row. Brandon . . .

→ Read More: Don’t Look Now, But the BDI is Cratering