Sold half of my DRYS today @ \$11.1103, which I bought for \$5.33. This is just to get my principle back on this first sign of weakness in this rally. We tested the resistance at \$12 this morning on historic volume. I think we will break above \$12 eventually. That's why I'm still leaving the other half of my position in the game.
What's more concerning for me is the broad market itself. We are still struggling to break 900 and hold on to it. From Figure 2, we see that the market (S&P) is in the middle of an important channel right now. Breaking above 910 is good. Breaking below 885 is bad. We are definitely in a trader's market these days, so buy-and-hold isn't a strategy to use now. And since it's unclear to me which direction we'll be heading. I feel safer to cash in my principle in DRYS now as it's a highly volatile stock. I believe it will go up, but I can't dismiss the possibility of it heading back down.
Now that my DRYS position is effectively free money, I can ride it out if it becomes choppy from now on. After rocketing from \$4 to \$12 today in like a week, I can't expect DRYS to keep pushing in one direction even if I expect it to go up.
[caption id="attachment_951" align="aligncenter" width="500" caption="DryShips Inc."][/caption]
[caption id="attachment_952" align="aligncenter" width="500" caption="e-mini S&P 500"][/caption]