Did you “SEA” what I see?
While the Nasdaq was busy Selling off hard Friday, bleeding in earnest with high volume (See QQQ chart below) , and all the MOMO stocks like PCLN, AMZN,NFLX and other market darlings were being thrown overboard last week, something odd was also happening…
The Beaten down , almost hated “SHIPPERS” were actually setting sail! And do you know why?? well, 
– SO Am I recommending them? Well, I DO recommend keeping an eye on them, because the volume that came into a few of them had that “REAL” look to it, despite some of them selling off a bit as the day went on. I love when hated sectors , or “feared” sectors begin to light up , so I will just post a couple of charts below to show that , the way I “SEA” them, they may be setting up for an upside move.
BALTIC TRADING (And this chart isnt ugly)
EAGLE BULK SHIPPING
GENCO SHIPPING (yes, it Sold off end of day, but still up 27% that day at the close !!)
While watching these SHIPPERS, to see if an opportunity to trade them arises (I will be Tweeting if I see something) , I also really like the set ups possibly forming in COAL (KOL, ACI, ANR BTU, WLT ) as mentioned in my last report. ALSO the ENERGY plays that I recommended in my “ENERGY” report did not feel the heat Friday either. I am still in many, as well as AKS, from a report 2 weeks ago, as I mentioned that I expect a cup & Handle to form, so far it is working out that way.
Since I am watching COAL stocks, a reader asked if I’d do ETF charts too
(request a specific ETF & I can take a look at it too) So here is …
KOL WEEKLY & DAILY – Coal Etf
This KOL daily was posted earlier in the week in another report
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Thank You for reading and as always , feel free to leave a comment in the comments below.
Alex, you may want to do some research on what triggered the jump in GNK on Friday — it was an agreement with its lenders to pave the way for ch. 11 bankruptcy, with some warrants for stockholders which upon further examination did not look as good as first thought (hence the pullback later in the day). The GNK pps jump launched the whole sector, but it remains to be seen whether that has any staying power, at least for the short term.
Alex, you may want to do some research on what triggered the jump in GNK on Friday — it was an agreement with its lenders to pave the way for ch. 11 bankruptcy, with some warrants for stockholders which upon further examination did not look as good as first thought (hence the pullback later in the day). The GNK pps jump launched the whole sector, but it remains to be seen whether that has any staying power, at least for the short term.
Hanvestor, Thx, and I knew that before writing the article-
GNK remained up almost 30% on a day when the markets sold off hard. ( They are cutting 1 Billion $ in debt by allowing lenders to control the company) . The thing is, when you do what I do …and you see an entire sector bottoming for weeks & then many move higher on a bloodbath selling day , you cant dismiss it on a “NEWS” item for one company. I put them on a watchlist, and thats what my report says to do. This sector shows signs of Bottoming (As seen in their charts). Watch & see in the next few weeks…Thats what you want to do. Thx for reading
I hear you Alex. And the shippers are all holding up today with only modest losses. I’ve been out of them for some weeks now, but watching for the right time to reenter.
Yeah, I have been out of them for quite a while too. Still out. Looking at a 6 month chart (And with MKTS still in sell off mode) FRO , EGLE ,and maybe BALT have an “Interesting” look, but not ready for me to want to BUY yet. For now, Energy & Coal is where my trades have been ( COAL may be bottoming or just bouncing here, still in a downtrend (WLT, BTU, even ANR ).
Best to you -HV
Hanvestor, Thx, and I knew that before writing the article-
GNK remained up almost 30% on a day when the markets sold off hard. ( They are cutting 1 Billion $ in debt by allowing lenders to control the company) . The thing is, when you do what I do …and you see an entire sector bottoming for weeks & then many move higher on a bloodbath selling day , you cant dismiss it on a “NEWS” item for one company. I put them on a WATCH-LIST, and thats what my report says to do. Not ‘buy’, but keep an eye on how they act moving forward, since This sector shows signs of Bottoming (As seen in their charts). Watch & see in the next few weeks…Thats what you want to do. Thx for reading
I hear you Alex. And the shippers are all holding up today with only modest losses. I’ve been out of them for some weeks now, but watching for the right time to reenter.
Yeah, I have been out of them for quite a while too. Still out. Looking at a 6 month chart (And with MKTS still in sell off mode) FRO , EGLE ,and maybe BALT have an “Interesting” look, but not ready for me to want to BUY yet. For now, Energy & Coal is where my trades have been ( COAL may be bottoming or just bouncing here, still in a downtrend (WLT, BTU, even ANR ).
Best to you -HV
Alex, thanks for the great post. I added to my HK position today after it bounced off the 10. Do you agree that this was a retest? I put the stop on the added shares at the same level as the initial entry. Just curious what your currently thinking about HK. I think it looks good in the near term, but I can see that it’s got resistance coming up on the weekly chart.
Hi Sven – I was thinking the same thing (I didnt add, I already bought twice ). If you pull up a 50 and a 200 sma you can see that it hit and was rejected at the 200. I think it may go sideways & try to break out again. With the markets selling off , the Energy stocks held up well.
Alex, thanks for the great post. I added to my HK position today after it bounced off the 10. Do you agree that this was a retest? I put the stop on the added shares at the same level as the initial entry. Just curious what your currently thinking about HK. I think it looks good in the near term, but I can see that it’s got resistance coming up on the weekly chart.
Hi Sven – I was thinking the same thing (I didnt add, I already bought twice ). If you pull up a 50 and a 200 sma you can see that it hit and was rejected at the 200. I think it may go sideways & try to break out again. With the markets selling off , the Energy stocks held up well.