Put in your 5-7% trailing stops on DRYS right here, right now.

I've been watching and calling the action on DRYS for several weeks now.  I wasn't sure if this recent move up would really turn into a 3rd wave but once it broke to a new high then that was the trigger.  So now it's time to look at the wave again.

In short, I think DRYS is pushing the final stages of 5 big waves up and is now ready to take a big pullback.  In fact, this most recent wave stuck me as not have the look of a 3rd wave and now I see why: it's not a 3rd but rather a 5th.  DRYS now has 4 waves up where 1, 3 and 5 can all be joined by a line. 

There is no law that says this 5th wave can't throw over quite a bit more and in fact $5.20 might be possible since it looks like we are forming a 4th wave triangle as you can see below on a zoomed in version of the chart.  And if the triangle is only 4 of 3 of 5 then perhaps $6 is even doable.  But the easy money has now been made and the downside is high.  When falls back a-b-c to the prior 4th, the target is $2.60.  So there is some to gain but a lot to lose.   Better to let it play out if you missed the first run and wait until big wave 2 is done and try to catch the 3rd wave in 2014.  But let 'er ride until a 5% to 7% trailing stop takes you out and then walk away and don't look back.