High and DRYS
On the subject of sinking high flyers, I bring you DRYS.
Geez, you truly get no happy medium in these things. Straight up pretty much for 6 weeks. Followed by a nice little 25% repricing down in a two weeks.
And again, unimpressive options action. Remember that lesson you hear on TV every day, where volatility moves inverse to stocks? That’s always true, except never.
OK, that’s an exageration. But volatility virtually always declines in bubbly stocks as they decline. The Tech Bubble melt up of 1999 and melt down of 2001 are the perfect examples, but it’s a story that gets repeated over and over again.
I did buy some gamma here (small) yesterday, but more because it feels like something has to give here in the stock real soon. Either a move to the 50 day, or a pop off the fugly RSI (2).
But longer term, it’s just like POT yesterday. You want open ended and terrfied shorts, not a range.
May 28th, 2008 at 4:30 pm
Wow. Did it ever reverse today.
May 28th, 2008 at 4:56 pm
yeah, what’s that about blind squirrels?. I was all set to post that FSLR looked similar, but that left the station before I could spit it out.
May 28th, 2008 at 5:09 pm
yeah they both took off, holy crap
May 28th, 2008 at 5:55 pm
ag also. I’m sure Cramer must be jumping on board post fact any second now.
May 28th, 2008 at 6:34 pm
Did anyone get the feeling that shit had the texture and trajectory of a recently deceased feline?
May 28th, 2008 at 9:52 pm
its known as shake n bake the little guys…and swoop in to buy in at high volume at extremes to get the daytraders into the action.
May 29th, 2008 at 7:59 am
probably right, dead cat bounce. You get those violent rallies like that in broader downtrends. And volatility ugly, that’s not a great sign in a stock like that.