This whole sector is poised for quick gains, definitely underpinned by higher rates and renewed Chinese and Euro activity. You want some cash fast, follow suit, by the week's end pocket the money, my strategy with these once high flyers who are about to resume an uptrend, clearly the entire sector is on the move.
I agree with you except for one thing. I don't look at this sector as "quick gains". I believe the shipping sector is going to start a new bull cycle which will be underscored by global economic growth. DRYS is headed to $5.10, my charts tell me that but I think this is a long term, multiyear bull cycle for shippers that will see these companies start to recover across the board starting in 2014 and continuing for several years out.
And looking at imported ore inventories in Chinese ports, the tonnage has risen steadily for a month by 2 million tons per week. There is stocking up for the winter yet to come, so we may see rates hold for a couple weeks, but there are limits to what the Chinese will pull in and store.
What about the new surge in ship orders? Do you think the ship builders will stop building bulkers? They have scrapped most of the really old ships, do you think scrapping will continue even with decent rates and an overall much younger fleet now?