RSSShippers Perk Up With Baltic Dry Index
By Bruce Zaro | August 15, 2008 | 11:07 AM | 3 Comments
After 28 eight days of the Baltic Dry Index declining, we have had 2 consective days of gains, including Wednesday’s rally of almost 5%. With the 4th quarter looming, has this come to life in anticipation of an end to the bull market and the resumption of global economic growth? Channel checks show that demand remains quite strong across a wide spectrum of shippers, fueled by the anticipation of renewed Chinese stockpiling after the Olympics end. In addition, a recent estimate of the tab to rebuild the spring earthquake damage was $170 billion – to be completed by 2010.
Check out Dry Ships (NSDQ: DRYS), the high beta leader of the group, along with Genco Shipping and Trading (NYSE: GNK). Watch for an upside breakout in DRYS at 82. Buy on that break out and be prepared to add on any break above 88, which would represent.the upside violation of the bearish resistance line.
Author has a position in DRYS
*Note: the author and/or his clients are long both stocks mentioned in this article.
...and on a related note: check out yesterday's global shipping announcement from Delta Global.
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Comments (3) | Related Topics » Shipping | Technical Analysis
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