Dry Bulk Shipper Stocks Outlook

I believe we are in a simple downtrend in all the shipper stocks. Any good bounce to trendlines should be shorted. I think DRYS will be heading to 40s or even lower. Just as we have been seeing disassociation between GLD and gold stocks 1-2 years back, we are seeing the same behavior in BDI and shipping stocks.
GLD and gold stocks are in the same place (higher correlation) this year as BDI and shipping were in 2007.

As far as EW is concerned the B-waves were completed in late Feb on shipping stocks and now we are working on C-wave.

In terms of fundamentals, I think shipping stocks are dependant on world economy and the amount of infrastructure build out in India and China. There is a massive buildout in the second tier cities in India and Olympics has helped China's buildout. So, more steel, coal and raw materials will be transported to these countries from natural resource countries such as Brazil, Australia etc. From a long-term perspective, yes the fundamentals are in place for future rate increases. But what is affecting these stocks is Sentiment. The sentiment that as US slows, the emerging countries will slow down. If US is or would get in a deep recession, then the buildouts will be slower.