Whatever Floats Your Boat: Nordic American Tankers
Dragonfly Capital | Sep 23, 2015 12:39AM ET
The stock market has been weak for a month at this point. Not a crash in price, but not a mild dip either. In times like these I do 3 things. Put protection in place to the downside for a deeper pullback. For me this is an October Put Spread in the S&P 500. Put together a shopping list of stocks to buy when it seems that the coast is clear. You may have heard me talk of my crash bid page on my brokerage workstation. This has 6 names now waiting for that all clear signal.
Finally I look for stocks that are outperforming the market on a relative or better yet, absolute, basis. One stock in this last category is Nordic American Tankers Limited (NYSE:NAT) This stock pulled back with the market into the August 24th low. But since then it has only gone higher. Today it broke to a 2 month high and looks primed to steam further.
The chart above shows an Inverse Head and Shoulders pattern with a price objective to at least 17.90. This would place it at a new all time high. The momentum is bullish as well. The RSI and MACD are both rising. And the Bollinger Bands® are opening higher. The price is also above all of the SMA’s, withe shorter, flatter 20 and 50 day SMA’s turning up to join the upslope in the 100 ad 200 day SMA’s.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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