Daily Archives: October 17, 2017

Baltic Dry Index… Freak Show Here

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Here we take a look at the BDI once again and marvel at its complex Inverted Head & Shoulders pattern with compound shoulders. Of course, that is a TA’s way of baffling ’em with technical sounding bullshit when what he really means is ‘look at that freakish thing; I don’t really know what it is but man it looks bullish!’

BDI is a shipping calculation, not an index; and hence, who really knows if it even translates well to a stock chart? But in my highly technical opinion, man, this freak looks bullish (and positive for the global economy). (more…)

Braving the Wild Nat Gas Ride

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To anyone friendly to natural gas for the past five months, holding a long position certainly has been a challenge, and has been more akin to riding a bull on the PBR circuit.

Just to illustrate the bumpy ride, take a look at the 4-hour chart of the nat gas futures (NG) showing the price swings across a multi-month range carved out between 2.90 and 2.82 on the low side of the range, juxtaposed against resistance atop the range at 3.15 to 3.23. Within that range, over several months, there has been no significant change in the perceived  fundamentals that indicate there is just too much natural gas around to lift prices consistently above 3.15 for any length of time, yet there is also an apparent perception that under 2.90, nat gas prices are relatively cheap.

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