The words, "go short" were on my mind yesterday, but that would not have been a good idea to get in front of this freight train!
I feel bad for all the rookie traders who got suckered in to buying it late and got greedy and didn't take profit
We all learned that lesson somewhere. Its tough to not get caught up in the hype sometimes when you are a new trader. The thought of missing out on the next big move is a killer!
Lets take a look at the 5min of this awesome example of what happens when a stock runs for no good reason:
I noticed DRYS was halted yesterday and this was before the big drop today Here’s What’s Fueling The Irrational Rally In Shipping Stocks One of the primary reasons for the extreme moves in DryShips and other shipping stocks is a combination of large short positions in the stocks and extremely low share counts. DryShips in particular lowered its share count from around 672 million to only around 1 million via a series of reverse stock-splits throughout the year. The splits were intended to allow the stock to maintain its Nasdaq listing after it had lost more than 98 percent of its value in the first 10 months of 2016. Even industry insiders are suspicious of the move. Euroseas Chief Financial Officer Tasos Aslidis told Benzinga rising shipping rates have been “significant, but not to the point of justifying such wild moves in [stock] price.” A few other reasons are floating around as well, including a sharp uptick in the Baltic Dry Index, which has been rising steadily over the past few months. Another explanation is the successful bankruptcy liquidation of Korea’s Hanjin Shipping Co, whose assets sold at a higher than expected price. http://etfdailynews.com/2016/11/17/heres-whats-fueling-the-irrational-rally-in-shipping-stocks/
After about 10 years of watching this stock when it was at 6 a week ago I was sitting there thinking some stupid explosion could happen and it run to 100. I then told myself it would crash back down in one today. This all went through the back of my mind last week
I wasn't in on DRYS, but played ESEA, SINO, TOPS, and SHIP for 2 days. I sold all last night. I was fearful of the DRYS situation and knew I wouldn't sleep well holding over night. I left about 3k profit on the table by selling. They were all flying high in the premarket. I kicked myself around all morning about it. But felt a lot better when they turned on DRYS this morning and my stocks nose dived also. Could have been bad if something crazy happened and I held and for some reason couldn't get out of my positions this morning. It was a roller coaster and profitable couple of days, now back to some normal trading if there is such a thing.
Sell now if you still own will touch $4, better to save what you can at this point. I'm not short this stock, just experienced
$DRYS Dubious as it may be, the entire shipping sector went up together, This as it's leader. Stayed that way 4 days. NOT a pump and dump.
Going crazy again this morning....halted 2nd time now, but was a nice grab at the closing bell yesterday for anybody that did.
