Whilst the main US indexes saw slight weakness for the third consecutive day, Dry Ships (DRYS) closed with very strong gains, settling +11.2% @ $3.07. It would appear the near term down cycle is over, and price momentum is now starting to swing back to the upside.
Media interest is increasing in DRYS, ahead of earnings early next week.
DRYS is expected to see a smaller loss, but still...a loss..is a loss! In an economy that is supposedly in the fifth year or recovery, the shippers are still having real difficult in turning a profit. Some recovery huh?
I would only be concerned if we see a weekly close <1200, which would entirely negate the push into the 2000s, and suggest that it was a failed breakout. As it is, I'm guessing we'll see renewed upside into the early spring, perhaps to the 3500/4000 level.
If that is the case, DRYS has a chance at hitting double digits within 4-6 months, which is of course a very bold call to make.
DRYS have earnings on Monday Nov'4.