Shipping Sector Watchlist
Earlier this fall, we found an incredible amount of success within the shipping sector, as an industry-wide wave of bullish activity carried many related stocks to record moves.
That rush tuckered out a few weeks back, but we want to circle back around this morning to cast a light on several of these stocks that we think could be gearing up for a recovery. Each of the following had been in a drastic downturn leading into yesterday’s session, and each of them began to show some major signs of life in coming off their bottoms.
We’ll want to keep all of them in mind in coming sessions, and watch for signs that a more sustained uptrend could take effect.
Dry Ships, Inc. DRYS
Sino-Global Shipping America, Ltd. SINO
Diana Containerships, Inc. DCIX
Diana Shipping, Inc. DSX
Seanergy Maritime Holdings Corp. SHIP
Euroseas Ltd. ESEA
Global Ship Lease, Inc. GSL
Catalyst Biosciences, Inc. CBIO
We stipulated yesterday that if CBIO held above .80 on any early pullbacks, that we’d be interested in tracking its activity through the session, and it did just that.
The intraday machinations of the stock actually provided two separate opportunties for swing trades. First, the initial run out of the gate that took it from 1.12-1.42 (+27%) and a subsequent dip-and-rip pattern from .855 back to 1.12 later on in the day (+31%).
With volatility sufficient to provide over 50% in cumulative gains on the day, and the fact that it maintained support above our designated level, we’ll keep CBIO on our radar for the time being.
Eli Lilly and Co. LLY
On strong 2017 guidance released this week, LLY beat Wall Street’s forecast outlook estimates for the first time in 3 years. As a result, the stock started to climb, and has begun to fill a large gap on the chart to the upside.
What we want to do here is highlight both a short term and extended term options trading idea to correspond with the present situation. For swing trades this week, we’ll look at the LLY Weekly $72 and $72.50 Calls, and to take advantage of the possibility of an extended uptrend, the LLY 01/20 $75 Calls.
LSCG, TRUU, ERFB, TTCM, AIRW, NDEV, AXPW