Dryships (DRYS) – What an appropriate name for this company. A shipper whose stock has done nothing but sink to the bottom of the ocean leaving its “investors” HIGH and DRY. And up until around one week ago it was the fuel for many fits of laughter and silly conversations between Trader Scott and me. Who in their right mind would be trading this on the long side? It’s been on a downtrend since May 2008 and has split as many times as Elizabeth Taylor said “I do”. On the other hand, for short sellers, it’s a traders dream come true. With the velocity of its death spiral, we’re quite sure many folks have found great wealth selling it short.
Somehow we became fascinated by the sentiment we would find on forums like Stocktwits. People would say they were “loading up the boat” with more and more shares only to be greeted by a big gap down the next day, sometimes losing 50% of the value in less than 24 hours leaving it’s holders utterly stunned with disbelief.
However, here we are on August 11 looking at a very interesting and evolving picture. We’re not making any big picture claims about DRYS, but the character of this stock changed on July 21st, and Scott noticed it early that day, and mentioned it at the Winners List page. He did a video talking about the character change, and since then it has presented some wonderful opportunities to day trade it on both sides, long and short. We have both been trading it, and it has become a favorite day trader for me. Even on a day when it appears to be moving sideways on a 30 minute chart, it still trades in a ranges between .18-.30. That’s nice profit for a stock under 2.00. I actually traded 2000 shares today at a .28 profit for a quick $553.80, holding it for an hour and 6 minutes, and I’ll be watching it again tomorrow for more opportunities:
I’m also watching 2 other shippers: DCIX and EGLE. Scott and I have taken notice of the changes happening in these charts. Will they grow legs and pull themselves out of the depths? We don’t know, but we’ll definitely day trade them as long as the opportunities continue to present.
Please let us know if and how you’re trading DRYS, DCIX or EGLE. We love to hear your trading success stories.