Shippers-NMM Short

Here's the last post covering trades in Shipping


Here's an update on NMM. There are other shippers covered as well and if you want analysis on any, let me know. I have only so much time to cover the market and I could spend a day covering shippers alone. NMM has stayed below the stop provided and thus the trade is still open, I'm adding it to the Feb. list.

 Here's the typical upside false breakout of the linear regression channel-remember, in technical analysis this would initiate a long position, but Wall Street knows what technicians will do, thus we have a very high % of false breakouts, I'd estimate near 85%. Thus we adapt, use risk management and stops that are wide enough to handle the initial volatility of a breakout/breakdown. This is also a trade options players may want to look at.

 Here's the area of extreme volatility mentioned above as well as a break below the 50-day m.a.


 3C daily negative divergence.

 3C nd MoneyStream 30 min negative divergences on the false breakout.-Note the volume.

10 min chart seems like NMM may be preparing for the next leg down. I'd still use a TC stop, but as the trend starts, volatility will ease up until the next consolidation.