As the sharp Spanish investor SimpleNoRisk pointed out timely, there are many reasons to keep an eye on BDI.
In general I try to keep my mind clear of economic data on analysis while trading in order to approach markets with no preconceived notions but in any case we always need a "framework" or general idea of what is the most probable scenario for the midterm (IMO long term view is for institutional investors and "gurus" so not my business). That is why I came up with the Bonds study currencies, and now with BDI. I want to build some scenarios for the months to come and more important, avoid the influence of all type of financial media to direct my trading. I believe charts are the only trustworthy source.
In this particular case I wanted to point out how BDI has lead stock indices in the past and how now is signaling a potential reversal since is making lower highs. Note also how Shanghai's SSEC is following it much closer than SP500 which presents a bigger divergence. If stocks indices are to follow BDI (which I believe) then SP500 is due for a stronger correction in the midterm
BDI, SPX, SSEC comparison.
Close up view of divergence
