Menu
  • Crash Course on Orderflow
  • Training
  • Premium
  • Traders Cafe
  • Intraday signals
  • MCX Signals
  • Library

Marketcalls

Simply Intelligent Technical Analysis and Trading Strategies

  • Software
    • Amibroker
    • NinjaTrader 7
    • Ninjatrader 8
    • Option Action
    • Market Analyst
    • Metatrader
    • Python
    • Datafeed
  • Market Profile
    • Orderflow
  • Markets
  • Commodities
  • Forex
  • Economy
    • Banking
  • Webinars
  • Trading Lessons
    • Algo Trading
    • Infographic
    • Video
You are here: Home / Baltic Dry Index / Should Nifty Traders take cues from Baltic Dry Index?

Should Nifty Traders take cues from Baltic Dry Index?

November 1, 2009 by Rajandran 4 Comments


 

Baltic Dry Index is often referred as the leading indicator of th economy. The index measures the demand for shipping capacity versus the supply of dry bulk carriers. The demand for shipping varies with the amount of cargo that is being traded or moved in various markets
 
The BDI is termed a leading economic indicator because it predicts future economic activity. Because it provides "an assessment of the price of moving the major raw materials by sea," according to The Baltic, "… it provides both a rare window into the highly opaque and diffuse shipping market and an accurate barometer of the volume of global trade — devoid of political and other agenda concerns
 
Does the Stock Market(Say Nifty) follows the Leading Indicator of Economy?
 
Charts presented shows the past 1 year price performance  comparision of both BDI and Nifty Index. For the Past one year
BDI and Nifty remains totally uncorrelated most of the time especially during Dec 2008-APR2009 and from July 2009-OCT 2009 . If a trader or an Investor looking for global cues from Baltic Dry Index . Probably he would missed the huge trend and most probably he would be in loss if he looks for cues from the economy

We cant directly compare leading indicators with the index of the same period..
cos leading indicators might be ahead of time But look out the scenario. If an investor started looking for cues from BDI during July – Aug 2009 then probably he could stay away from commodity stocks say for example tata steel, sesagoa as it is constantly cracking right from july 2009 and expecting a decline in commodity prices which could directly impact those commodity stock prices

May be it would create fears among investors because during July-Aug market looks overbought and the PE ratio is above 20. Also Baltic dry index had crashed more than 50% from its high just leave the impression that market would crack any point of the time…..

But what happened is exactly the opposite… Commodity Stocks
rallied,,,,, Gold rallied…. Commodities rallied…. and more
over index rallied…..

Utter confusion remains in relating these term with Index or Stocks

 
If you are a Nifty trader or an Investor then stop looking cues from BDI.
 
Stop Reading External Factors and Start Reading Nifty!

Let External Factors be External Factors!
 
Source:
www.marketcalls.in

Related Readings and Observations

  • Download – Introduction to Amibroker 2nd Edition  by Dr. Howard BandyDownload – Introduction to Amibroker 2nd Edition by Dr. Howard Bandy Introduction to Amibroker 2nd Edition written by Dr.Howard Bandy released few days back this week and the good thing is it is free to download for personal use. . Download Now!
  • 7 Things a Trader Should Understand to Do Proper Backtesting7 Things a Trader Should Understand to Do Proper Backtesting Backtesting is a process of Testing the trading conditions with respect to the past historical data, evaluating not only the profitability of the system but the underlying risk factor […]
  • Market Profile Key Reference Levels – 4th FEB 2016Market Profile Key Reference Levels – 4th FEB 2016 Nifty futures opened gap down (Sentimental gap down) on 3rd FEB followed by a balancing action. Back to Back poor high and poor low is noticed on yesterdays auction and prominent POC at […]
  • Put writers are bullish despite uncertain environmentPut writers are bullish despite uncertain environment Looks Put writers are not still in the panic mood to unwind their positions from the 4900PE and 5000PE in contrast they built the positions against the market bearisness. The current mood […]
  • Market calls Revenue ChartMarket calls Revenue Chart For the first time disclosing the truth. The above amibroker monthly chart(Monthly Income Vs Time(month-year)) shows the revenue of marketcalls(in terms of dollars) from the Google Adsense […]
  • Colour Changing CandlesticksColour Changing Candlesticks Here is a simple demonstration about how to vary the color of the according to our strategy. For demo purpose i had used the ADX indicator which uses positive and negative directional […]

Filed Under: Baltic Dry Index, Crude, Gold, Nifty Technicals

About Rajandran

Rajandran is a Full time trader and founder of Marketcalls & Co-Founder of Traderscafe, trades mostly using discretionary Trading Concepts like Market Profile, Trading sentimental analysis, building timing models, algorithmic trading models. Instructs professional traders, full time traders & aspiring full time traders. Rajandran attended college in the Chennai where he earned a BE in Electronics and Communications. Rajandran has a broad understanding of trading softwares like Amibroker, Ninjatrader, Esignal, Metastock, Motivewave, Market Analyst(Optuma),Metatrader,Tradingivew,Python and understands individual needs of traders and investors utilizing a wide range of methodologies.

Comments

  1. ankitsolanki says

    November 4, 2009 at 4:24 am

    hi rajandran, do you know any site from where one can get eod values for batic dry index??thanks.

    Reply
  2. Rajandran says

    November 4, 2009 at 7:41 am

    Hi AnkitTry out herehttp://stockcharts.com/h-sc/ui?s=$bdi

    Reply
  3. ankitsolanki says

    November 4, 2009 at 9:01 am

    thanks rajandran, thats very helpful. one more request…any idea on historical data for bdi?thanks a ton.regards,ankit

    Reply
  4. prithviraj aithal says

    January 23, 2012 at 5:43 pm

    well said!

    Reply
  5. Krunal Gajjar says

    January 24, 2012 at 3:39 pm

    “If you are a Nifty trader or an Investor then stop looking cues from BDI.

    Stop Reading External Factors and Start Reading Nifty!
    Let External Factors be External Factors!”

    Well Said Rajandran Sir,….

    Krunal.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Email Newsletter

Sign up to receive email updates on latest trading strategies , analysis & financial market updates

We Respect Your Privacy

Premium Access

Username:
Password:
Remember Me
Lost your password?

Tools For Traders

  • Marketcalls Android App
  • MCX Signals
  • Intraday Signals
  • International Commodities
  • OI Tracker
  • Participation OI
  • Your Broker
  • Market Sentiment Analysis

Amibroker Updates

[Recorded Webinar] How to Send Bracket Order, Cover Order and Multiple Orders using Amibroker and AlgoAction Platform

December 25, 2018 By Rajandran 1 Comment

AlgoAction Now Supports Bracket Order and Multi Orders

December 23, 2018 By Rajandran Leave a Comment

Code Snippet : ORB – Open Range Breakout Levels – Amibroker AFL Code (Better Version)

December 4, 2018 By Rajandran 1 Comment

Button Trading in Amibroker using AlgoAction Platform

December 2, 2018 By Rajandran Leave a Comment

[Recorded Webinar] Chart Based Vs Scan/Exploration Based Automated Trading – Amibroker

December 2, 2018 By Rajandran 1 Comment

  • Facebook
  • Google+
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Metatrader Updates

MetaTrader 5 Demo Servers Now Available for BSE Currency Markets

March 20, 2018 By Rajandran 8 Comments

ChartIQ – WebTrader for MT4

December 4, 2017 By Rajandran 4 Comments

Metatrader 4 – Web Platform Overview

October 29, 2015 By Rajandran 9 Comments

William VIX FIX Indicator for Metatrader 4

May 16, 2015 By Rajandran 9 Comments

How to Install Custom MQL4 indicators in Metatrader

November 14, 2014 By Rajandran 6 Comments


About | Contact Us | Terms and Conditions | Privacy Policy | Support Policy | Privacy Policy | Refund Policy | Disclaimer


© Copyright 2018 Marketcalls Financial Services Pvt Ltd · All Rights Reserved · And Our Sitemap · All Logos & Trademark Belongs To Their Respective Owners·

Data and information is provided for informational purposes only, and is not intended for trading purposes. Neither marketcalls.in website nor any of its promoters shall be liable for any errors or delays in the content, or for any actions taken in reliance thereon.