Today, 12/9/08, DryShips ( DRYS ) is one of leading stock gainers in pre market trading. DryShips is up 13% in early trading after going up 50% yesterday.
There really isn't any news with this stock as the sector is just extremely oversold and when you have these big bear market rallies, the most beaten down sectors tend to get the biggest bounces.
Dryships has hit my $8 target today in pre market and if Drys can remain strong, it could potentially see $10-$12.50 which are the next two resistance points. I would be cautious as Baltic Shipping Rates are still at rock bottom. This could be only a short squeeze! The true test is if the overall stock market starts to roll over, you see these bulk shipping stocks ( DRYS, DSX, EXM ) staying semi strong rather then totally rolling over.
To be continued.......
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