The Baltic Dry Index appears to have made a perfect double top, and is currently rolling over, well within its sustained downtrend, and appears ready to make new all-time lows imminently.
First the BDI 10 year chart, which indicates the recent rally fell short of even approaching the top of the massive 5 year down-trend channel:
An 18 month chart give a closer look at the perfect double top just completed:
Finally, the long term BDI chart super-imposed over a long-term gold chart. Gold appears to be completing a perfect flag-pole/pennant formation, while the BDI looks like absolute death:
Charts courtesy InvestmentTools.com
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
If orders are falling off this badly, globally, its no wonder central banks are rumored to be considering coordinated QE!
@RocketsRedGlare, great points you make. The BDIY is dropping like a fly when it should be ramping up for the upcoming Holiday sale-a-rama time of year. Time is now to replenish and add inventories and if that aint happening now the shit is going to hit the fan in a couple of months or even earlier. I do think a massive, coordinated Central Bank QE will be annouced over a weekend to prevent the EU disaster from pushing the rest of the manipulated markets over the cliff’s edge.
AC
This could give a new meaning to BLACK FRIDAY! Credit card debt is already at record levels, IE everyone is already maxed out. With all the printing of the last 5 years there doesn’t seem to be a lot of disposable money around to spend on frivolous holiday consumerism this year!
There are some amazing stats on shipping Germany is responsible for 40% of all shipping. 100 shippers recently filed BK in Germany and another 600 companies are on the edge of BK. Greek shippers got out at the least several years ago and are buying bottoms for pennies on the dollar. The eastern block is parking hundreds of ships off shore, idled and with nothing in their holds. Not good for the market. Shipping is down in a major fashion. The economic repercussions will be massive. Food stuff shipments will be down to a large degree due to the drought too That means starvation to millions of people in the middle east and Africa.
AGXIIK: I wonder if all those foreign ships with empty holds are just waiting to be filled with priceless relics of ancient Greece. To Be saved or pilfered when THE EVENT finally happens!
AC~ Your comment about Christmas season is spot on. Drops in BDI presage economic slowdowns 2 to 3 months ahead of time.
This indicator is another aspect to the perfect financial storm forming right around the end of this year.
Christmas retailers may have to put everything on sale this year AND give away merchandise to people just to get them to show up (other than the muppets, of course.)
I have my doubts that even a massive coordinated QE could turn the downward trend back up. The counterfeit notes (I still refuse to call it money) created always goes to the banks. Sometimes they mail a few hundred out to the rest of us and call it stimulus but, the effect is temporary at best. It will buy 10-20oz Ag however!