Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)

Archive for July 2007

watching moving averages in downturns DSX Diana Shipping

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Plump yields and booming global trade have shipping companies on Wall Streets sweet side this year. Let’s look at Diana Shipping. The stock has been climbing the 50 day average like a rope for the past year. At Point A, I started to point at the times the stock drifted lower and the price held along the 50 day moving average. (Gee, looks REALLY random to me.)

Now, I can’t say why for sure but there are several times where it bounces around the 21 day average, and at point B, that 21 day average provides some clean support. I’m entering the realm of “‘Looks to me’ guesswork,” but it looks like some heavy players use that 21 day line to add to a position without waiting for a growth stock to fall down to the 50 day. Just keep that observation in your quiver.

Similarly, if a growth stock doesn’t find firm bids at the 21 day line, the struggles to keep its head above water at the 50 day line…. well, just make sure you have good reasons to own it.

Diana Shipping DSX

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Written by heyercapital

July 31, 2007 at 9:42 pm

Posted in charting