Market is proving me wrong this morning (Sept 17). The sector did open higher and it reversed.
Here are my thoghts for next 2 weeks - again these are my personal views and take it with a grain of salt. One word of caution, these stocks are speculative and any correction will make them better buys. One can take 25% position at any point and can wait to buy later.
The iron, copper / finished steel demand is going up - meaning the iron ore stock piles have to be shipped via sea ships. All dry ship stocks are sitting in the basement and trading volume is increasing along with 5 to 10% price movements. This means that sooner or later these stocks will move up. How much is up to your own interpetation? my view is 50% in next 3 months.
I plan to hold a core holding of EXM and DRYS for next 15 days hold. I will also use these two for day / swing trading. I will be usinging 7% stop loss.
My other stocks in this sector are FRO, DAC and DSX.
You may like others in this sector.
I have 1000 shares in EXM and 500 in DRYS at this time. I have been trading in and out for small profits in last 5 days in these two stocks. This is as full disclosure at this time.
Update Thursday afternoon - sold half of position at slightly above break even and holding half position only - will be buyer on dips
Link to Baltic dry index chart
http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND
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September 16, 2009
Edited: September 18, 2009
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