Stocks to short - DRYS (Update).

[FibMaster]

This is an update to a prior stock that I posted on my own website. See the following two links for my prior video updates in DRYS. Please be brave, these two prior updates cover other charts beyond DRYS. Hang in there, until you see the DRYS chart discussion in each update....

http://fibmarkets.no-ip.org/updates/minis/071127_mini.html (November 27th)
http://fibmarkets.no-ip.org/updates/forex/071128_CAD_DRYS.html (November 28th)

Since then DRYS has given us excellent shorting opportunities! We had an ideal rally to enter short again when it resisted at $93.00 (approx) twice! See the Fibonacci studies that predicted that resistance level (the blue horizontal line).

So what now?

Now we need to be careful. DRYS is approaching the $70.00 level which is where it supported in late November. Also, I have significant Fibonacco support (retracement and expansion) at about $60.00 to $61.00

So DRYS is approaching key support levels below. Consider banking your profits on signs of support, then stand aside to see how the chart develops. the prime (more attractive/reliable) trading opportunity is coming to a close. From here it gets more risky.

-Neal.

[lori]

curious how u trade this--using options?

[FibMaster]

curious how u trade this--using options?

Sure options are fine, or just short them in a margin account.

Have you traded options before? They offer great leverage, but come with a load of complications.

[FibMaster]

This chart is trading down at about $56 now, and still no sign of support. If DRYS can't get above 60 soon, it could work it's way down to the next Fibonacci expansion support at $37.25, in the long-term. That's possible, but there is still time for support to develop.

I'm not watching this chart, just looked back to see how it worked out.