Has DRYS finished wave 2 down?? If so, wave 3 could be up on deck.

In the first post on DRYS that I have  made since I began this blog, I suggested that it had finally bottomed and was now forming the handle portion of a cup with handle (C+H) formation.  I took a look at the chart today and now I wonder greatly if wave 2 isn't complete.

I'm guessing that what just happened in the chart below is that wave 2 was made up of a flag formation.  You can see the characteristic 5 rail bumps labeled a-e below and then you can see the throw under on the e wave.  The first confirmation happened by suddenly breaking back up into the channel.  The next confirmation, should it occur, would be a break out of the upper, down-sloping channel resistance line.

I'm going to assign this one a 70% chance of breaking the top resistance.  If that happens the next target becomes the making of a higher high than wave 1 (i.e. > $4.00).  If it can do that then I give it a target price of $6 before the end of Jan 2014 and, contingent upon said prerequisites, assign it 85% confidence in making that target/time frame.

By the way, these Greek shippers stock prices are highly correlated to the Dry Bulk Shipping Index which basically indicates how much it costs to ship stuff in the region.  After dragging along at cutthroat day rates for a long, long time, the rates are now reacting to something.  Oh, I wonder that that could be.  Could it be that they no longer believe that Bernanke has any sort of workable QE exit strategy?  Nah, probably coincidence.  LOL.





In case the above paragraph really didn't make sense, during the dot bomb boom, dry bulk goods shipping rates went through the moon in a huge bubble taking share prices of Greek shippers with them, then they collapsed and all of the Greek shippers like DSX FRO, DRYS, etc. have been dragging the dirt for years now.  All of a sudden we are seeing activity in the dry bulk rates.  This is important because it has an effect on the cost of things shipped to us from China.  On top of that the Yuan is strengthening as China buys more gold each month and then creates currency swap deals with its trading partners to cut the USD out of the deal.

This is not sounding good for the purchasing power of the lower middle class.  Now all the government has to do is cut off their EBT cards again for about 3 weeks and the violence will escalate to the point where the government can justify martial law in order to fix the mess that it created in the first place.  I'm not predicting this will certainly happen, I'm just saying it would not surprise me.  Obama is running out of time to have something drastic happen that will give him justification not to leave office in 2016.  I didn't start that rumor but to be honest it is going around.  Of course Chris Matthews chuckles about it citing a constitutional roadblock but folks, Obama's working as hard as he can to weaken the Constitution.  I also remember a time when people used to laugh at Peter Schiff for calling the coming collapse of the housing bubble back in 2006.

Nothing is impossible.  Never take the Constitution for granted.