Action:The charts above are of DRYS(Dry shipping) and DSX (Diana shipping). As can be seen, both of these have been trading in a slowly uptrending channel, YTD. DRYS was facing a steep downtrending resistance line and recently broke out of it (looks like a violation in time). DSX has been in a small triangle formation (in the short term) and we expect it to follow DRYS soon and break the downtrend line. Even better, these stocks are right at the bottom of the uptrend channels.
Guess:
We like these stocks for a rally in july/august. We will be a buyer on weakness in these stocks sometime next week heading into July 4th.
16 comments:
Can you do a chart for the coal and steel stocks? (MEE and MTL)
Ok, I will do one tonight/tomorrow. But eyeballing them, MEE looks due for a correction, MTL is looking weak too. I own SID myself. It is not a conviction buy for me. I am hoping for it to go upto 46 or so, where I can sell it. MTL and SID are showing bearish MACD divergences.
Thank you...since I am new to this I want to make sure I am reading them correctly. I put a limit sell this morning on MEE.
I am hoping MTL will bounce so I can sell...at this point I hope to break even.
DRYS held this trendline today (July 1), We dipped into DRYS here,
I was wondering today you bought DRYS...I got in yesterday at 80.27...a bit early. Do you think it will move pass the last high of 116?
What is your take on the DRYS drop today?
I still hold drys. I am currently 4$ down. I am holding till the channel breaks. The channel and technicals are still intact, but the stock is right on the brink of so many pivots. It will be bad if it breaks into 68 region. I am expecting it will hold. I don't see anything in the charts(like in the case of MTL) saying the channels will break. It is really difficult to say a channel will hold, the best answer is to say yes, since it did in the past. That is what I am sticking to.
This may turn out to be a losing trade. But if it does work out, we can see DRYS at 100$ within a month. The short interest in this stock is over 25%. Let see!
If it breaks the 68 range does it go to 60?
We got out of DRYS today in the morning @69 for a 5$ loss. I know this was a huge one, but there is always another trade.
The action was just not very good. It felt like a load on my chest and I had to get rid of it.
you think it is going to drop further? I say in the range of 58-63.
That being said, we will reenter, if DRYS shows strong upside volume. sometimes channels break are just to shake out weak hands (like I could be if the stock goes up ;-)) to sell off.
I don't expect it to drop so much. There is still an outside chance that drys breaks back into the channel and takes off. We will wait for the market to rally and watch. The next 3 days are key here.
For now, we just own sso and some uyg, which we bought today when the SPX was at 1255.
You may have sold a bit early..
I may have sold a bit early. I liked what I saw in DRYS today. I was tempted to buy DRYS again. But I already have some long positions in sso and uyg (around 30%). I want to see some confirmation of a rally and then I will buy some drys or any other long position. The market is beginning to get on my nerves, all my indicators are oversold,every single one of them.
I bought DRYS at 75.5 yesterday. The channel seems to be holding so far. I got shaken out of my earlier position, but I have made up my losses now.
I will remember this lesson and include it in my discipline.
We bought in yesterday again in the high 74 and sold it today in the low 80s. The channel is still holding true. But we don't want to be holding DRYS if the market tanks. DRYS is not a "hot" stock like POT etc. with a strong up trend line.
Today's action scared us and we sold off most of our long positions for small losses from yesterday. I was not expecting such an ugly reversal. I thought until 2.00 p.m the action was extremely bullish.
Good luck for tomorrow. Tomorrow is a very important day.
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