The 160 % run up in the BDI the last 3 weeks came to an abrupt end on Thursday. The BDI and BCI both turned down at about the same rate they rose the last week. See the DRYS market page link here for the update.
With the recent lack of rally strength in the US markets, the Dow's refusal to rally over 8300 on recent rallies (prior rallies tested 9000) and its recent problems rallying above 8000, it looks to me like the next leg of the bear is about chew its way through the market again. I see 7000 for the Dow being tested, maybe by next week, if not today, partly because of falling oil and other commodity prices as we approach the expiration of options next week. I also expect oil to test the $30/barrel price before options expire next Friday. It already broke into the $34.xx range yesterday, and US oil inventories have been on a relentless rise on weekly reports for some time now.
Also there was other bad news yesterday of a charterer bankruptcy that might affect GNK, NM and DRYS stock and the recent announced sale of a ship by DRYS.
News on the Charterer bankruptcy, Samsun Logix, is at:
http://www.forbes.com/2009/02/10/dryships-samsun-logix-markets-equity-0210_shipping_42.html?partner=yahootix
Friday, February 13, 2009
Subscribe to:
Posts (Atom)