DryShips Inc., Eagle Bulk Shipping Inc Join the Bulk Shipping Stock Surge

Shipping stocks DryShips Inc. (DRYS) and Eagle Bulk Shipping Inc (NASDAQ:EGLE) are surging amid a sector-wide rally

Nov 15, 2016 at 10:27 AM
facebook twitter linkedin

Shipping stocks are rising in step with the Baltic Dry Index, amid expectations that booming commodity prices under President-elect Donald Trump will be a boon to the shipping industry. Among shipping stocks trading higher are DryShips Inc. (NASDAQ:DRYS) and Eagle Bulk Shipping Inc (NASDAQ:EGLE), up a respective 45.7% and 11%. And while both DRYS stock and EGLE stock are trading near notable moving averages, the former, at least, could get a bigger boost should short sellers start to capitulate to the upward price action.

Diving deeper, DRYS stock was last seen near $62.43. Although DRYS remains 76% lower year-to-date -- and bottomed at $3.84 on Nov. 3 -- it has surged a jaw-dropping 1,250% in the past week alone. This pop has the shares trading north of their 120-day moving average, a trendline that, until yesterday, DRYS had not closed north of since early May. The stock's next target could be the overhead 180-day moving average -- currently located at $68.23 -- a trendline not conquered on a daily closing basis since June 2014.

As suggested, DryShips Inc. could get an additional boost, should short sellers throw in the towel on their bearish bets. Short interest jumped 18.5% in the most recent reporting period to nearly 113,000 shares -- the most in at least four years. It would take almost four sessions to cover these bearish bets, at DRYS' average pace of trading -- leaving some sideline cash available to help fuel the security's fire.

EGLE, meanwhile, is taking aim at double-digit territory for the first time since late August -- when stock volume exploded -- last seen at $10.20. What's more, the stock earlier topped its 180-day moving average -- a trendline it has not seen the north side of since April 2014. While Eagle Bulk Shipping Inc has jumped more than 141% over the past week, though, it remains a long-term laggard, as well. Specifically, the shares of EGLE are down almost 86% year-to-date -- and hit a record low of $4.06 as recently as Oct. 31.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners