I hope PB doesn't mind me reproducing her work from this morn.
Talking about the BDI and all the good stuff, too good to miss.
'I mentioned yesterday that it looked like interest rates had topped in the US – rates all came off in the latest session so at least something is moving in the right direction. Wall Street stronger again but the SPX is still really only in the range of that big down-day earlier in the week. So, making very slow progress.
But the star of the session was the US dollar which continued higher. Rather unusual when rates came off but then nothing seems to be following a normal path at the moment. However, the stronger dollar certainly had its normal effect on the gold price which continued lower – but I did notice that palladium finished slightly better. But there is one thing I have been thinking about with gold that we should perhaps start giving some attention to - the plans for digital platforms involving gold with even our own Perth Mint doing its best in this regard. Could this market start to fill a few gaps? Perhaps some members might have some thoughts/info on this matter.
Shanghai finished lower again yesterday and is now trading around the lower level of its support. Watching trading closely on the five minute chart as it went into its close, one could not help thinking that it had a little help to rally it slightly off its low. This chart still worries me. Don’t forget it broke first in late January.
Something a bit different - I always keep an eye on the BDI – Baltic Dry Index – the cost of shipping dry cargoes such as our iron ore, coal and wheat. This index has risen from 320 at the beginning of 2016 to be currently standing at 1330 after rallying strongly through April. Keep in mind that at the beginning of 2013 it was at 2320 and even more unbelievable in early 2008 it was just under 12,000. I like to keep a bit of a watch on this market as over the years we have seen a distinct influence on our major shippers. If the BDI can continue to build a huge base here, it would definitely be good news for our miners as it would suggest continued long term demand. Worth thinking about.
Our market put in another poor performance yesterday as the banks once more felt the wrath of investors. Actually WBC is running off the bottom of my chart! However, I did notice that there were some really good moves in other leading stocks such as WES, WOW and WPL. We are not fully appreciating the extent of the support for these stocks when we have such a poor performance by the banks. My hourly chart of the XJO just cannot break free from the lines that have been blocking is moves since late March.
Speculative end is still very quiet. There doesn’t seem to be a definite theme of where the money is heading – just been individual stocks. Need care on those that are being “promoted” elsewhere.'
