Last night, unfortunately the text editor in Google's Blogger system wasn't working, I spent a lot of time on my computer trying to fix it, which was wasted time as I found out through their site, everyone was having the same problem so there was no analysis last night. I sent out a Google Group note about it, something I haven't used before. If you received it, maybe you can shoot me a quick email and let me know.
In any case, Quickly, a synopsis is this, another theme that's developing in the new year is the usually quite volatile Baltic Dry Index is heading lower.
This is a composite of shipping rates for Dry Bulk Carriers as opposed to crude tankers. It can be a sign of the economy and many including Cramer-not that he invented it, but he does talk about it, use it as a forecasting indicator for the economy. Obviously the more demand for goods, the higher the demand for a limited number of ships and prices rise. However, I'm not using this in that sense. I'm looking at shipping as a theme that's developing and the falling profits, especially if oil rises. If this trend continues, I'll be looking at shipyards as well.
Last night I added 4 trades to the list, they are shippers, 3 of them are short and 1 is long.
DSK is toppy looking, it's broken support-the white box is an area I feel it could rally to, I'd especially like to short it in that area.
GNK has in the past been a momentum crowd play on shipping so it can move and it can be volatile. I added this trade as either a market order or a limit order on a break of support, it depends on your tolerance for risk. If entering at market, you may want to adjust the stop up a bit-and take less shares initially. You can always add on a break of support.
It looks like the recent bounce off support is under distribution right now, how much further it has to go? There was about a week of accumulation before it so it could be a day or two longer I'd think, but that will also depend on the volume. You can always email me for an updated 3C chart.
NMM is showing heavy daily distribution in this wedge, the breakouts from wedges can be volatile, so even though I like the trade in this area, I placed the stop up a bit higher to account for that volatility.
And here's a long, ONAV, it seems like it has a great deal of daily accumulation and I thought anyone who might want to run a pair, might take a shot with this one. It's actually just a penny or two away from the trigger now.
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