Hi BW and friends, I googled BDI and found some more to add to the subject. Although the next article is dated Oct 2003, it does help to explain what the BDI is and how it is used as a leading indicator.
"Right now, copper is sending a message that is being transmitted by plenty of other data, but that many analysts find difficult to digest: Despite all the tensions, despite the huge imbalances in trade and capital flows, despite all the world's apparent economic troubles, the global economy continues to grow at a steady and impressive pace."
Well, from the little bit that I just read about trading materials and finished goods, it does look like the US and global economies are strong. However, at what cost?
Some of those who read this will know that I've gone back to work for now. My field is in Quality Control and I'm now performing dimensional inspections on large castings that were poured in Italy and machined in India.
Over the last six weeks, I've rejected close to 80% for out of tolerance diameters, lengths, threads and handling damage to sealing surfaces. Of course, all of this data including the individual heat numbers is being recorded via computer 'fill in' forms and, in some cases, including digital images.
Information, along with engineering disposition, that is being forwarded to the vendor in India. One of the vendor's representatives was 'in house' two weeks ago and promised that future shipments would be improved. And they will be, as I'm getting paid to tell them what is out of drawing and I'm sure there are engineers getting paid to tell them how to correct these discrepancies.
And that is my point. Remember when 'Made in Japan' was regarded as a low quality junk label? And today Japan is highly regarded as a producer of quality automobiles. I think the same will happen with 'Machined in India' in the not too distant future.
I know this transition of good paying American jobs to low wage paying foreign vendors is helping American companies (I'm sure many of which are foreign owned) but it's hurting the American blue collar consumer in my opinion. Just witness the pitiful 56,000 jobs created last month.
Needless to say the next few years are going to be interesting. Note the imbalance in trade as described in this article.
"India Says Trade With U.S. Should Double to $40 Billion in Three Years"
I am still short with both USPIX and UCPIX. However, with another source of income, I can afford to wait and see what next week will bring. I still see the monthly NDX and RUT charts as closer to over bought than over sold. Here are charts of ETFs.
I might add that the Q's are at resistance with a decrease in volume while the IWN is sporting negative divergence, a decrease in volume and an indecisive November candle. I don't think that Wall Street has got this bear skinned yet. :)
BTW anyone hear about those SAMs that were being smuggled into Los Angeles Ca?
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