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The Titanic is now fully loaded with passengers


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The BDI, along with about every other "indicator" is useless or nearly useless unless:

 

[1] You can review the actual source data

 

[2] Have a perfect understanding of how that data is collected and from whom

 

[3] Have a perfect understanding as to how the data is then processed

 

In addition, specifically in this case, what are the impacts of externalities such as "excess capacity"

 

For instance, if the number of ships available just increased significantly and the number of ships on empty backhaul is temporarily up that should crush the index

 

Conclusion -- it seems the BDI and it's recent plumment is worth a review, but to take that chart on face would be lazy (generally speaking, not pointed at you)

 

In the end, as presented, it's an interesting chart, but that's about it

 

As Doc taught me the markets don't have anything to do with the economy. They respond to liquidity in the same way but there are lags and more and more over the years the liquidity has centered in the markets because the so called money is not transferable into the real transaction economy.

 

So the index may mean something but not for the markets in any way to influence a trade.

 

And then there are the market cycles which are beyond explanation.

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If we gap up tomorrow, chances are it will be a gap-n-go and new highs should be made. Bears need to prevent this gap in globex, but that is probably wishful thinking at best. Buy on Friday and hold over the weekend? How many times has this worked in the past!

 

 

If the RTH session opens with a gap up, then look for NQ 2578-2580 as possible resistance area.

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