Comments on: CHART OF THE DAY: THE HANG SENG/BALTIC DRY DIVERGENCE http://pragcap.com/chart-of-the-day-the-hang-sengbaltic-dry-divergence Sun, 12 Feb 2012 13:32:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Forex Educator http://pragcap.com/chart-of-the-day-the-hang-sengbaltic-dry-divergence/comment-page-1#comment-5485 Forex Educator Sun, 30 Aug 2009 08:06:14 +0000 http://pragcap.com/?p=8031#comment-5485 Time to get out of stock market and start shorting high yield currencies. Time to get out of stock market and start shorting high yield currencies.

]]> By: tradeking13 http://pragcap.com/chart-of-the-day-the-hang-sengbaltic-dry-divergence/comment-page-1#comment-5455 tradeking13 Fri, 28 Aug 2009 23:39:59 +0000 http://pragcap.com/?p=8031#comment-5455 There is a glut of new ships coming online that were ordered years ago when the BDI was at loftier levels. This is helping to keep rates low. http://seekingalpha.com/article/132595-shipping-industry-has-too-many-ships-being-built?source=feed There is a glut of new ships coming online that were ordered years ago when the BDI was at loftier levels. This is helping to keep rates low.

http://seekingalpha.com/article/132595-shipping-industry-has-too-many-ships-being-built?source=feed

]]> By: JD Swampfox http://pragcap.com/chart-of-the-day-the-hang-sengbaltic-dry-divergence/comment-page-1#comment-5416 JD Swampfox Fri, 28 Aug 2009 13:30:19 +0000 http://pragcap.com/?p=8031#comment-5416 Examining the chart, I see that the BDI tends to lead the HSI by about 2.5 months. The "divergence" from this tendency occurs during the crisis-recognition time frame (Mar08 to Dec08)in which the two indices move coincidently. Presently the lead/lag relation is back in effect and the BDI is now "predicting" a significant decline in HSI. Examining the chart, I see that the BDI tends to lead the HSI by about 2.5 months. The “divergence” from this tendency occurs during the crisis-recognition time frame (Mar08 to Dec08)in which the two indices move coincidently. Presently the lead/lag relation is back in effect and the BDI is now “predicting” a significant decline in HSI.

]]> By: Jeff http://pragcap.com/chart-of-the-day-the-hang-sengbaltic-dry-divergence/comment-page-1#comment-5415 Jeff Fri, 28 Aug 2009 12:57:33 +0000 http://pragcap.com/?p=8031#comment-5415 http://www.bloomberg.com/apps/news?pid=20601087&sid=aOkYkh3CsUFg "Aug. 7 (Bloomberg) -- The Baltic Dry Index, a measure of shipping costs for commodities, had its worst week since October as Chinese demand for shipments of coal and iron ore slowed." ... "Chinese Steelmakers Rates are declining as Chinese steelmakers delay imports while they negotiate annual iron ore prices with producers such as Rio Tinto Group, BHP Billiton Ltd. and Vale SA, Durrell said. “I don’t think they will come back until they agree,” he said. The drop reflects a wider slide in demand for raw materials that will likely push prices for metals, commodities and energy lower, Eugen Weinberg, a senior commodity analyst at Commerzbank AG in Frankfurt, said by phone yesterday. " http://www.bloomberg.com/apps/news?pid=20601087&sid=aOkYkh3CsUFg

“Aug. 7 (Bloomberg) — The Baltic Dry Index, a measure of shipping costs for commodities, had its worst week since October as Chinese demand for shipments of coal and iron ore slowed.”

…

“Chinese Steelmakers

Rates are declining as Chinese steelmakers delay imports while they negotiate annual iron ore prices with producers such as Rio Tinto Group, BHP Billiton Ltd. and Vale SA, Durrell said. “I don’t think they will come back until they agree,” he said.

The drop reflects a wider slide in demand for raw materials that will likely push prices for metals, commodities and energy lower, Eugen Weinberg, a senior commodity analyst at Commerzbank AG in Frankfurt, said by phone yesterday. “

]]> By: Paul http://pragcap.com/chart-of-the-day-the-hang-sengbaltic-dry-divergence/comment-page-1#comment-5411 Paul Fri, 28 Aug 2009 11:48:45 +0000 http://pragcap.com/?p=8031#comment-5411 S&P future up to 1035, another new high today? S&P future up to 1035, another new high today?

]]> By: silly things http://pragcap.com/chart-of-the-day-the-hang-sengbaltic-dry-divergence/comment-page-1#comment-5410 silly things Fri, 28 Aug 2009 08:14:30 +0000 http://pragcap.com/?p=8031#comment-5410 I have a very different view. Unsustainable imbalances should be corrected. The excess US current account deficit and the excess China current account surplus cannot and should not continue. Right now, things are correcting. China prior to 2005 had a minimal current account surplus. China have grew rapidly only a few years ago without needing to run huge current account surplus. In time, China need to get back to that healthier way to grow. The divergence is a good sign and should stay. Lastly, this is excellent for the global economy too. This will stimulate domestic production in various economies including the US. I have a very different view. Unsustainable imbalances should be corrected. The excess US current account deficit and the excess China current account surplus cannot and should not continue. Right now, things are correcting.

China prior to 2005 had a minimal current account surplus. China have grew rapidly only a few years ago without needing to run huge current account surplus. In time, China need to get back to that healthier way to grow.

The divergence is a good sign and should stay.

Lastly, this is excellent for the global economy too. This will stimulate domestic production in various economies including the US.

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