Baltic Dry Index (BDI), an index that tracks worldwide international shipping prices of various commodities. The index has been used by some as a barometer for the volume of global trade in commodities.
From a high of 11700 in May 2008 it plunged to a low of 663 by December 2008 at the peak of US 2008 financial crisis. Since then, with the recovery of WTI crude oil spot price from its December 2008 low of $US 30.28 a barrel and recovery of commodity prices in general, BDI has
moved higher inline with the Dow. By November 2009 it has completed its wave 1 at 4661. Since then it has completed its a-b-c wave 2. On 15 July it reached a low of 1700 that can be the end of wave 2. It is likely that its wave 3 has started. Can this be the indication that the commodity prices are going to move higher? Economic activities are picking up? As for Dow I am still maintaining that it is in its wave 3 that can last until October 2010.
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