While some may be wondering why the market is still headed higher or when a correction will come, why think any harder when looking for the next catalyst. Just pick a sector that hasn’t moved yet, make up some projections of optimism and away we go. Shipping it is. Technically, yeah it could work.
A few calls on EXM lately have worked out. It’s definitely not a pretty stock, associated with the Greece fallout and low volume sluggish trading the last few months. However, it has paid off and I think with technical price points in hand is just as viable a trading vehicle as the more discussed shipping stocks like NAT, DSX and DRYS.
In the most recent three day slide for shippers I have cut my position in EXM completely from an entry at 6.00, but thats not to say that I don’t think it will continue higher. Technically EXM is behaving nicely, although underperforming many price point targets it hasn’t behaved out of sorts to most of our targets and might even beat its rivals to a top when its said and done. This baby has been with the bathwater for quite a while.
While I was waiting for another entry point I started to look at DRYS. It was around the same price and was trading much more volume and seemed to hit price targets more emphatically, with some nice price motion.
I don’t follow commentary/value/earnings on stocks, just price motion. Today’s news on DRYS meant little to me other than “this stock is moving faster to a buy signal than that stock…EXM.” I think it goes unsaid that regardless of your time frame, although very important, the faster you see your trading strategy executed fulfilling your prediction or not, the better.
Yes, the price motion technical approach could be interpreted as ignorance to the more scholarly trader, but its about being profitable not being right. The price is ultimately what your paying for and selling for if you will. Plus whenever someone’s thesis is blown up by an equally sharp wit and brow the technical signal that they have reserved usually acts as the culminating statement of there argument when there’s nothing left to reach for. Why argue about what has not happened yet, right or wrong. The price is now.
I’ve been trading the 30 minute trading time frame, which means I normally try and capture trading trends that last 7 to 14 trading days depending on volatility. It’s possible that a lot of these shippers could have large parent wave 3 moves ahead of them. Right now I see EXM and DRYS stalled in a wave 4 internal consolidation. This could mean large bullish trend to trade coming. With the price history of these shipping stocks being quite volatile during turning points, it may be tricky to trade in and out for some.
The current corrections may be one of two most opportune times to buy into this potential big move. I bought a little of DRYS today at 6.13. I’m looking to add to my position all the way down to 5.76. This is an important level in my short term time frame and I’m going to watch for support here and also at 6.00 and 5.88 if demand is high for DRYS. As with every trade, your individual trading strategy should support strict buy, sell and sell stop points.