Monday, June 01, 2009

Weekly Stock Pick

Buy Sell Hold
The Market Week Ahead

This week starts off with GM getting ready to file bankruptcy, and then the US taxpayer will own a majority stake. Geithner is meeting with the Chinese reassuring them their $800 billion US treasury investment is safe. Commodity prices are expected to continue their recent upside price moves. People are leaving their subprime loan foreclosed houses so fast they are leaving valuable possessions behind. Nice combination for a volatile market and big price swings possibly . . . a trader’s paradise.

My Stock Pick This Week

My stock pick this week is an ocean shipper with the big Panamax ships. China’s stimulus plan and subsequent possible increased commodity imports has been helping in giving the shippers share prices a boost lately. Long term I love the shippers with a growing global economy the supply demand picture looks to be favoring the shippers. Short term, I’ve got a sell or wait for a pullback to buy in. If the stock price keeps moving north use the stop-loss and reverse into a buy position.

Sell-Short Diana Shipping. Ticker DSX

Sell Entry: 18.78 to 17.69

Stop-Loss: 18.88 or Higher

Take Profit Areas: 16.07 to 15.26, 14.19 to 13.68, 13.21 to 12.74

Diana Shipping Company Profile

Diana Shipping Inc., through its subsidiaries, provides shipping transportation services. The company focuses on the transportation of dry bulk cargoes, such as iron ore, coal, grain, and other materials along worldwide shipping routes. As of December 31, 2008, its shipping fleet consisted of 13 Panamax dry bulk carriers and 6 Capesize dry bulk carriers with a combined carrying capacity of approximately 2 million deadweight tonnage. Diana Shipping charters its vessels to various national, regional, and international chartering companies. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping was founded in 1999 and is based in Athens, Greece.

Click here to review and trial the Trading Software I used in determining my short position on Diana Shipping.

Click the Diana Shipping Stock Chart for a larger view.

Diana Shipping Stock Chart