JNinPDX

Dryship's Transformational CEO

I find it odd that no one has raised a caution flag or even discussed the HUGE volume which has occurred over the last 5 trading days. The last time volume was this high occurred on 10/30/07, when DRYS was at a major trading top. Subsequently, DRYS fell 40%. However, the level of distribution last October was miniscule compared to what happened last week. This becomes more evident when bringing up the weekly chart.

Another factor one should consider is the dizzying increase in bunker oil prices. Bunker oil is the fuel these ships use and can account up to 50% of operating costs. Bunker prices in 2004 was about $175, it is now about $575. Higher transportation costs will surely have an affect on global demand and regardless of who incurs the cost; the end result will be the same, higher global inflation. The BDI is at ridiculous (not sustainable) levels and will most likely come down, as well as most shipping stocks.