SCI, BDI and my Luck Index!

This has been a pretty good trade and I guess it’s time to unwind now. I am never good with breakouts and get extremely edgy at the top – it runs counter to how many momentum people think and act but I think I suffer from vertigo. This is lucky cause I had no clue what the Shipping Corporation of India (SCI) has been doing or is about to do. I later on realized that they are in the doldrums and are getting rid of their “Black Pearl” and their attempts to raise prices are getting whooped by competition. No wind in their sails, so to speak. The pearl bit is not off the mark given that SCI is in danger of losing its “Navaratna” status – whatever it means. I am no Jack Sparrow. I entered when I happened to see the Baltic Dry Index (BDI) spike up at end Sep. I had no clue about the differences between spot contracts and forward contracts rates and the billing mix for SCI. All that wisdom comes in hindsight!! In this case it has been pure luck. 🙂

The BDI technical chart (via ycharts.com) looks overbought to me. I may be wrong and I guess breakouts are all about RSI remaining in elevated levels, but when you get some gains on pure luck and nothing else, I don’t believe in “letting the profits run”. 😉