Dryships DRYS Analysis - 12/31/08 - December 31, 2008

Today, 12/31/08, Dryships DRYS stock is breaking out with heavy volume this morning. If you are long this stock, the key levels to look at are $12.10 and $13.76. These are the two highs on the last run up.

As for this afternoon, DRYS is hitting strong resistance in the $11's where there is heavy selling around the $11.37 area. If Drys can break $11.37 it sets up a potential afternoon run. A break back below $11 at any point today would be viewed as bearish but a sell off could set up for a gap up in price on Friday 1/02/09.

The key point with Drys is it has traded back above the 10 and 50 day moving averages which if this holds up would be a bullish buy signal. for now, i'm watching $11 and $11.37

The Baltic Dry Index is closed for the holidays and I believe it reopens 1/2/09. I will have the latest data posted here on my blog.

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