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Baltic Dry Index Posts 33rd Consecutive Decline, Down 2.7% to 1,790
The CSX earnings surge can be easily explained now that the rail company has cornered the China-US transportation corridor (what's that, it's an ocean? that's ok - the president will enact a law changing that). Because goods transit sure isn't using the dry bulk shipping sector, where the Baltic Dry has plumbed to a fresh 14 month low, continuing its longest drop in 9 years, down for a 33rd sequential day to 1,790 from 1,840. Don't look for any record numbers out of the China Customs agency or the US trade deficit in the next month.
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No wonder look what's going on in China:
In order to buy a house, he had put himself at the hands of loan-sharks. The weight of compound interest is too much... He said he is desperate, and want to sell a kidney to repay debts owed.
"line was to sell their kidneys, but also left their contact details." Yesterday afternoon, members of the public Xia told the newspaper, he was browsing a forum to see the local Hefei to a sale of kidneys of information.'s survey, this users buy a house by a loan shark, now unable to pay, and would like to sell their kidneys repayment.
Full story:
China Shark Loan Ponzi Finance- Local Chinese Sell Their Kidneys to Repay Shark Loans
Stupid people exist all over the world. The only reason the same does not happen here is that Americans of all income levels are used to being able to stiff anyone they want when it comes to repaying their debts. Americans also know they can act like A'holes anytime they want and little will happen to them. We need an injection of Chinese justice and payback in this country.
Bullets Bitchez
Be nice, don't forget that half the zh'ers have stopped paying their mortgages and credit card debts so they can buy physical gold. Think of their feelings.
I was surprised at CSX's numbers since their shipping volume has been basically flat for Q2.
http://railfax.transmatch.com/
I often wonder if accounting fraud is pretty much accepted and welcomed at this point. Perhaps this explains why small business is not benefitting from the recovery "as expected"?
Actually, it's encouraged and, probably, demanded.
Rosey fraud is the only alternative to the reality of the desolation. Expect massive unimaginable truly horrific extrema in overstimulation behaviors in every facet of existence to distract from the alligator that has the lower half of the body down its gullet.
Somewhere Hr. Goebbels is blushing.
CSX saw a 63% increase in automobile volume, and a large increasing in metal shipping, probably for making automobiles, versus last year Q2. That is where the improvement came.
Financials - http://sec.gov/Archives/edgar/data/277948/000027794810000041/qfr_q22010.htm
That's the fun with YoY data in a quarter, ain't it? What about YoY for 2008? 2007? 2006?
All you have to do is look at the SAAR for automotive. It ain't there. Q2 last year in automotive was the worst in modern history. How convienent to highlight that Q2 of 2010 is better.
http://recession.org/library/graphs/monthly-automotive-sales-history
fuel and labor prices have dropped this year improving their margin. That is how you get an improvement on flat volume YoY. Or perhaps it's another conspiracy.
I think the reference was to volume and not margin.
Considering that there is a strong push by CSZ to hire people with military experiance, I would look very closely at the percentage of high profit margin Military assets being moved by CSX.
Anecdotal reports indicate that people are seeing more of this type of transport activity.
Completely, utterly, without-doubt, irrelevant data that will in-no-way stop the ramp job in progess.
Agreed
Shorters are getting slaughtered.
And Cramer says we've seen the lows for the year.
http://www.cnbc.com/id/38203002
Don't mess with the PPT.
There probably are very few shorts in the market right now, which is why it is being ramped up so easily. When the shorts show up, you will see it, because there will be volume and huge drops of 200-300 points at a time just like before.
And when Cramer says one thing, expect the opposite to happen. When is the last time he made a call that was correct? If you count on Cramer to tell you what to do, then you need more help than you think.
I think there are more shorts than you think, THAT'S WHY it is being ramped up so easily.
There are only shorts and those covering shorts. And, yes, that's the only fuel left to jam this to astronomically absurd levels.
Tyler, don't you realize that The Messiah 2.0 can WALK ON WATER and is surely capable of doing the same with an oceanic railway system.
Baltic dry is so pre-i. There's an app for it.
Looks like a head-and-shoulders top to the BDI "recovery"
Didn't you read 'The Secret'? If you believe really hard, good things just happen. Screw data.
+ 10000
Very good point. What we're seeing is exactly a "The Secret" economy.
That crap movie really influenced the point of view of economists, government and media.
It's a "The Secret" recovery!
I believe I am Michaelangelo Buonarroti and I'd paint a masterpiece if they'd only remove this damned straitjacket.
these people are killing my shorts expiring this july 29.....do i have any hope to see some atleast some downside till then
I do believe the point of the phantom rally is to kill your puts. So, no, sorry about that.
the S&P 500 futures have hit a wall at 1087.60.......the 50dma....i hope this nonsense rally ends soon ...i m beginning to worry now....
That was some wall, huh?
you are spot on. june exact same pattern, ramp into expiration then collapse.
the BDI appears to be pointing to apocalyptic fall in trade numbers for june. Is this time to short China? Or would I be too early?
China may be easing up on commodity stockpiling, freeing up shipping capacity.
Well, at least China has been nice enough to finance every piece of federal spending that is not the big 3 (Social Security, Medicare and Medicaid) over the last year or so.
http://www.nationalreview.com/exchequer/230937/three-programs-take-literally-all-money
Awfully nice of them, don't you think?
Which is, of course, all bullish.
Nice H&S breakdown
Hopefully we won't have to sell our kidneys to pay China back
just a polite default would do
Whoops too late! Why didn't someone tell me sooner?
You guys keep forgetting the Chinese government has huge stores of commodities they bought during the lows. It is not just government stores that are flush, the pig farmers are still hoarding copper they bought two years ago. If copper does not make a big recovery they are the ones headed to slaughter...
they didn't buy copper on their online account
they took delivery to use it so don't worry they will find some better use for it
The index is showing deceleration which could be approaching a reversal or a dead cat. Next few days should show which direction.
No matter how the stock pumpers and hope mongerers want to try and ignore the BDI, it is one the major leading indicators, as it was in 2008 just before the wheels fell off the bus. The BDI is indicating now that the re-caps they put on the bus are coming apart. Too bad they didn't use steel belted radials, since Goodyear stock could be at infinity by now.
Nothing worse than a hole in the rubber when stimulation is done.
Cramer told me yesterday that the BDI is falling due to overbuilding of cargo carriers, not from a slowing world economy.
I intentionally left out the pervasive BOYAH! bookend blockquotes.
Giving me confidence to stay short copper... eventually I'll be on the right side... Painful to watch the melt up :(
Gotta buddy who owns a medium-sized trucking company in the midwest. They're getting their butts kicked by rail these days.
Like Tyler said, the trans-pacific rail must be jamming these days as well.
Warren Buffet bought rail last year.
He is in the "know".
Question is.. how much longer is he holding now that the stock has recovered?
The center piece of "recovery" was the Chinese miracle grow economy around the globe. Carmakers are making killer profits because of sales in China.
It's coming to an end in China and the rest of the world hasn't come back from the abyss yet. Banks are still broke. Pigs can't fly, at least not on their own. Australia, Canada and other mostly resource based economies are getting a kick in the face this time.
The BDI reflects the long anticipated end of the commodity game. After the crash the best game in town was in commodities. Now inventories are full, orders are down and commodities are the canary in the coal mine.
It's 2008 all over again. Lower commodity highs, BDI showing tremendous slow down ahead, banks are in trouble when haircuts are expensive.
Why worry? Let investors buy this market up and away. They get burned unless their stops are very tight. In a flash crash, the stops don't get filled.
I thought the Buffet purchase was a depressionary hedge as railway in the U.S. will be the cheapest transport during a depression when/if, as I believe should happen, the U.S. returns to a manufacturing instead of "services" based economy. Also it is a tangible asset that has real capital. Ol' Warren's actions speak louder than his words.
Well at least their oceans still have water. Ours?..............................
Glass half full types say that the BDI is falling largely due to new capacity coming on line as ships ordered during the boom years hit the water. Well, I can make this even better news: there is no rise in sea levels due to global warming; it's just all those new ships displacing the oceans!
I thought it was Oprah.
But EthaNoL volume shipments are up!
As warned about earlier, DOW/SP500 remains bullish for now ...
http://stockmarket618.wordpress.com
http://www.hydrolance.net/Common/SeaTrain-ocean-2%20copy.jpg
hey- google says ZeroHedge is a "Suspected Malware Site"
see:
http://tinyurl.com/2estsl8
and
http://tinyurl.com/25kt2nh
Why this staggering disconnect between Wall Street and Main Street?
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