Check out all of the dry bulkers. DRYS, EXM, DSX, GNK, etc. All of them have been sneaking up the last few days. I noticed the Baltic Dry leveling out. If the Baltic Dry were a stock, then the logical buy point would be now. Price retraces to the cup, bounces off and then continues its upward move. I dont know if the Baltic Dry Index works like that, but thats how I interpret it.
So you like DRYS the best I take it?? I never traded this sector before, but they seem like they have some room to move up...if the global recovery remains intact. What other things effect these stocks...seasonal issues, like with crude? Chinese demand? Which commodity prices are the most influential?
Good luck with that. Just a couple of days ago, there was an article stating that an armada of new dry bulk ships joined the bulk dry market. Prices are just in free fall. Keep on buying. At one point it will "level out"...
International shipping indexes are at deep recession levels, about where they were in 2005.. but the BCI T/C average is headed so sharply downward... those are Oil Tankers and other ships that large, not sure what's up with that, is the demand for oil way down, less than it was a couple of months ago? it's not a leader but it's headed sharply downward.. the bottom might not quite be in or it might be just the ebb and flow of oil supply in this uncertain world.. it's the most volatile of the shipping indexes and that makes it look scary when you overlay it with the other ones.. Maybe it's more the supply of ships than the supply of oil....
I saw some articles too on commercial real estate being bad and how unemployment is going up, but thats not stopping the IYR from pushing upward or the retail stocks from going north. In fact, Chicos FAS was on fire today adding another 6% and Joseph A Bank appears about ready to make ALL TIME HIGHS. Everytime I have been in a Walmart its always jam packed with long lines at the checkout. Walmarts are opening up all over America and abroad even with this broad based recession. I really believe the stock should have doubled or tripled since year 2000. However, it hasnt and holding the stock since year 2000 would have been a zero sum game unless you count the money made off the dividend. By the time you see such articles in the news, its already priced into the stocks. You make a good argument as to why the bulk shippers should be going down, but you can go ahead and present that argument to those trading the stock and see what happens. In the meanwhile, Im going to trade in the direction the stock is moving. If it pulls back, then I'll sell my position with no loss to myself. Im not going to argue with the market and how it decides to trade a particular stock.
Yea, I agree with buying the shippers in this spot. The thing is, everything else is moving up right now and it becomes of question of whether it's better to buy stuff that's already shown strength or to buy a laggard like the shipping sector.
http://www.ifw-net.com/freightpubs/...48F6.065acf6a61c52eed94766d1ba7da5d95d4ecd58a You should be always informed first hand...