Churning is a good word for DRYS. Forming a possible bottom, etc. It doesn’t look bullish yet but it certainly looks to be losing its bearish fangs and claws.

Ahh, the Bollinger Band trick. I didn’t like the lines and discovered you can display the Bollingers as an “Area” setting and then I decrease the intensity to 0.5 (50%) to give the shaded effect. This is done with the settings pane to the right of the Bollinger Band settings (where you adjust the values). You can also adjust color.

One could look at the $SHX – the Marine Shipping Index but I haven’t found a tanker index yet in StockCharts – do you know of a symbol or ETF? If anyone knows of a symbol, let us know here.

I analyzed the $BDI in the previous post and wanted to show DRYS as a vehicle to trade that bias – a stock that closely reflected it. A reader had requested I do an Elliott Count on the Baltic Dry Index which is what got the post started.

That’s an interesting thought – thank you for sharing the article link.

The strange thing about volume is that we can clearly recognize spikes, but we can’t as clearly ascertain in which direction traders are pushing price into those spikes – just that a lot of shares are changing hands quickly.

That was a possibility I didn’t consider – shorts piling on en masse. Let’s see what the near future holds!

Breaking above $8 which would break above the 20 would be the trigger of interest for me – sort of to let the stock ‘prove’ itself a bit before earning a trade.

Even though it’s cheap, a drop from $5.00 to $2.50 would be a 50% capital erosion – doesn’t seem like a lot in dollar terms but in percentage terms, that’s devastating.

Still, I think it’s a good idea to keep our attention on this stock and the BDI just to see if there’s any immediate changes and what those might mean for the broader market.

BTW, how do you get your bollinger bands to appear as a shaded area (vs lines) on your stockcharts? I tried to find that setting but couldn’t.

Apart i still have this question

Is it possible to analyze the tanker segment as you did for DRY Ships? If yes then what is symbol on stock charts? Any other source of data?

You could have choosen Baltic Dry Index($BDI) directly. Why did you choose this index? Just Curious!

news that the shippers might go private

http://www.forbes.com/2008/12/02/dryships-genco-closer-markets-equity-cx_ra_1202markets40.html?partner=yahootix