Baltic Dry Index Rallies 30 percent, Will It Last?

Many traders and economists look at the Baltic Dry Index, which measures worldwide shipping traffic, as a proxy for the global economy, After making a low of 723 on July 22,2014, the Baltic Dry index has rallied sharply, now trading at 942, up some 30 percent of the lows. Some of the major shipping stocks have responded in kind: -Dry Ships DRYS up 18 percent off the lows from 2.70 to 3.19 -Eagle Bulk Shipping EGLE up 35 percent off the lows, from 1.02 to 1.38 -Diana Shipping DSX: up 14 petrcent off the lows, from 9.2 to 10.53 -Safe BulkSB: up 17 percent off the lows, from 6.80 to 7.95 Will be interesting to see how long the rally can last, especially given the recent drop in commodity prices, such as oil.