Thursday, October 7, 2010
Continue to Hold/Buy DryShips
I am continuing to hold on this stock. I believe the sell volume are increasingly subsiding and I believe a bigger push will emerge later after a sound consolidation. I believe the coming push will be able to overcome the resistance of $5.00 and possibly head towards the $7 level and above.
Even though, I have invested all my money in DryShips at $5, I still have faith in this stock believing that it will cruise to the $7 level and above in smooth sailing.
Moreover, on the option report. It does clearly indicate the call option is reigning over the put option as per below:-
Calls are the options of choice today on Delcath Systems, Inc. ( ), as traders respond to a dramatic rise in the stock's price. Meanwhile, calls are also popular on DryShips Inc. ( ) -- even as the equity continues to back away from stubborn technical resistance.
by: Edmund Gaultier
DCTH has spiked more than 11% today to trade near $8, with unsubstantiated buyout rumors driving the stock higher. The shares are now struggling to break out above their 200-day moving average, which hasn't been surmounted on a daily closing basis since Aug. 12.
DRYS has backpedaled 1.3% this afternoon, with the shares extending their retreat from familiar resistance in the $5 neighborhood. This region is now home to the stock's descending 40-week moving average, which could create an additional layer of resistance for DRYS.
-posted by Elizabeth Harrow (firstname.lastname@example.org)