Shipping Stocks On Alert: Economy Improves, Sector Near/At Lows
As the markets make new all time highs, one sector may be waking up and ready for a monster run. The shipping stocks have been hovering at multi-year lows for quite a while. With oil spiking (signaling economic improvement), the U.S economy improving (seen by economic news today) and the Federal Reserve not running away from QE, it may be the perfect environment for a sector wide move and short squeeze.
Today, we are already seeing some of these stocks wake up and near breakout levels. Even with today's pop, these stocks still have major upside if the market rally continues. While every other sector appears to be near all time/52 week highs, this sector has lagged. There is major potential here for speculative money.
Some of the shippers that are moving today are Paragon Shipping Inc. (NASDAQ:PRGN), Genco Shipping & Trading Limited (NYSE:GNK), DryShips Inc. (NASDAQ:DRYS) and Eagle Bulk Shipping Inc. (NASDAQ:EGLE).