DRYS

[Riddicks]

I have been watching this stock and own a little position around $100 but it keeps dropping. What do you guys think is a good time to add more to my position or should I have bought options to cover my stock? My novice brain tells me it is headed to $78-$82 before a turn around, if it does turn around can it make a run like it did before its previous earnings? Thank you in advance for all your responses. I look forward to all your views and wonder what your charts tell you.

[Florida]

I have been watching this stock and own a little position around $100 but it keeps dropping. What do you guys think is a good time to add more to my position or should I have bought options to cover my stock? My novice brain tells me it is headed to $78-$82 before a turn around, if it does turn around can it make a run like it did before its previous earnings? Thank you in advance for all your responses. I look forward to all your views and wonder what your charts tell you.

I don't know if you got into this on it's way up to $116, or on it's way down. In either case, you should have been out of it before now. When it gapped up and ran higher on earnings on the 19th, a stop should have been set to get out if it fell below the previous days high. If you got in when it gapped up on the 21st, you should have had a stop at the previous days low.

Averaging down, which is what you suggest by adding to the position now, has never made much sense to me. Basically, as I have heard some people say, is that when you average down, you are saying, "give me some more of what's not working".

As for the charts, it is coming into support on the 50 and 200 MA's, at $79 and $81 respectively, but the chances of it doing much more than a minor bounce at those levels is unlikely to me. This is based on the high volumes and rate of decline since the earnings report.

A put option to protect your position going into earnings would have been a good idea. You could have purchased a June $110 put on the day before earnings for $10, and it is now trading at $25, which would have just about made you whole, but at this point, it's too late.

If it were me, I would get out of the position now, and see what develops. Should it hold at the MA levels mentioned, and begin another run up with volume, then I would consider getting back in.

I really don't mean to sound so negative, but at this point, you need to look at capital preservation, and not the slim chance of getting back to whole.

[john_for_u80]

I have been watching this stock and own a little position around $100 but it keeps dropping. What do you guys think is a good time to add more to my position or should I have bought options to cover my stock? My novice brain tells me it is headed to $78-$82 before a turn around, if it does turn around can it make a run like it did before its previous earnings? Thank you in advance for all your responses. I look forward to all your views and wonder what your charts tell you.

Drys looks like a falling knife! Right now it might take a support at 78-80 at 50 DMA and 200DMA. Drys got sold on a heavy volume last week. If 78-80 does not hold it might go much lower. Market is weak and will go to Jan's Low and likely will go down further if there is no real positive change for economy. There will be definitely buying done when it reaches Jan's low. Dont participate the buying. Buy only when you see the market bounce and keep a stop loss below Jan's low!

DOW, S&P chart sucks. DOW transportation index is pulling back but as far as i think this index does not include shipping stocks. It has rails in it.

Be careful. Dont add the position. Try to trim down at the bounce.

You are kind of in middle situation where I cannot tell you to short but on the other side you should not buy and try to sell if you see any strength. If stock goes below 200DMA then better sell.

Learn to read the charts before you invest. Along with individual stock charts monitor DOW, S&P charts on daily basis. They can screw the whole stock market!

[john_for_u80]

I have been watching this stock and own a little position around $100 but it keeps dropping. What do you guys think is a good time to add more to my position or should I have bought options to cover my stock? My novice brain tells me it is headed to $78-$82 before a turn around, if it does turn around can it make a run like it did before its previous earnings? Thank you in advance for all your responses. I look forward to all your views and wonder what your charts tell you.

RIG looks interesting. It might go to 160-162 before it pulls back or break higher!

[Imperator]

I owned DRYS for a while last year. The stock is very volatile.

What you have to pay attention to is the Baltic Dry Index shipping rates. The company does not hedge it's shipping rates so it is completely attached to the index.

[john_for_u80]

I owned DRYS for a while last year. The stock is very volatile.

What you have to pay attention to is the Baltic Dry Index shipping rates. The company does not hedge it's shipping rates so it is completely attached to the index.

I agree but when the market is heading downwards, it does not matter what Baltic Dry Index shipping rates are doing. Same like when any stock earnings knocks the cover out of ball and they still get heavily sold out!

[Riddicks]

I will def keep these tips in mind. I will look at the other indexes more carefully and I had been watching BDI index for awhile and DRYS looks like it can be profitable even if BDI sheds a few points off its recent high but all the signs point to higher demand for these bulk carrier ships and its UWD ships. I will keep an eye out for a turn around before I get back in to this stock, but a very close one, as it passed $88 today and is down to $87. Lets see where it ends up tomorrow.

Thank you guys for all your suggestions.

[wallstreetsedge]

actually going by the charts it looks like drys is headed back for a turn around. i would bet my left... that it has a good rally tomorrow

on the daily chart, today looks like a turn around

i would use 85 as a stop and look to start unloading at 100+

[wallstreetsedge]

just looked at rig... i wouldnt bet money on rig.. moving averages seem to be closing in on each other. the only way i would buy rig is if it manages to break 155 tomorrow
however the risk to reward on rig doesnt look worth it imo

[netwrangler]

RIG stands to benefit from increased deep ocean oil exploration and production.
I look for RIG and PBR to be leading the pack in '09.

[Riddicks]

Great call on that WSE, DRYS has gapped up 6% this morning and is looking strong. Hopefully it holds up and shows signs of a turn around or some life.

[Riddicks]

Broke $95 today, what to expect now? Looks like the BDI was down and this puppy still chugged up 9% for the day. Was this an anomoly or are we seeing a turn around here for this stock finally?

[wallstreetsedge]

Great call on that WSE, DRYS has gapped up 6% this morning and is looking strong. Hopefully it holds up and shows signs of a turn around or some life.

thanks, made some good money on this trade

going by the daily, i would stick to it and use 92.5 as a stop

[Riddicks]

I guess I have to hang in there right? I got in around when it was coming down so I am holding till it crosses $100, but after that I am using stop limits. I think it has legs for $106, what do you think? Is that the next stop for DRYS?

[wallstreetsedge]

next stop 100 but yeah i think i t has legs for 106

id probably look to sell out half at 100

[Supreona]

Yeah, it was bought all the way up until earnings, and then dumped. The momentum has flattened out after being on the downside for the three days prior. A nice correction MAY be in store, we'll have to wait and see. 106$ should be no problem.

JMHO.

[Riddicks]

Hey guys, I don't know much but I was just wondering if you would be able to confirm or correct my opinion on the movement today. The stock went up to $98 and then pulled back down to $91 but doesn't this just set it up for a run up from the looks of it?

Because it gained that 9% on Tues, and today it gave half of it back. So my question is that does this mean that it is set up for a breakout after just coming out of low pole reversal and then giving some back today?

I might be completely off the charts here as I am learning how to do this but any help or opinion would be appreciated.

Thanks. ( I am looking at

[wallstreetsedge]

nope... i would have put in a stop limit of 94ish...

even breakouts that are confirmed can still fail..a stock has to continuously test resistance 2-3 times to confirm a breakout without breaking support.. if it fails to continue higher, then its a failed breakout..also you have to trade depending on how you plan on trading this.. day, week, month, longer? always stick to the same charts!