Sunday, January 13, 2008

DRYS ,EXM,GNK - More Downside Ahead?

These are the names I have been playing from the short side with great success of late. On Thursday the Baltic Dry Shipping Index, a key indicator of shipping rates, fell its most for a single day since 1989. It fell 4.6% or 384 points. The index has now fallen 28% since it peaked in November. This not only indicates the weakness in our economy but could be telegraphing strong weakness globally. It also flags the possibility of a downturn in commodity prices. I don't know if this is a baked in statistic or not and these stocks do seem oversold, but stocks can stay oversold for longer periods. GNK and EXM rallied Friday but closed near there lows for the day. DRYS was on its way to the lows, so I'll be watching this group again this week.


About Me

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I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.