Shipping Into Some Profits: Why Shippers Took Off

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Sino-Global Shipping America, Ltd. (NASDAQ:SINO) and Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) were also big movers but nothing like the DryShips Inc. (NASDAQ:DRYS) move. Sino-Global Shipping America, Ltd. (NASDAQ:SINO) was trading around the $1.00 range before popping to over $14 in just a few days, while Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) made a similar move from the $2 range to just over $8.50. The sector has seen increased activity and volatility as more traders and investors are paying attention to it now.

A key economic indicator called the Baltic Dry Index (BDI) that measures the estimated prices of moving major raw materials via shipping is reaching levels that it hasn’t hit in over two years and is suggesting that the shipping market is picking up steam. President-elect Trump pledging to launch a $1 trillion infrastructure deal along with renegotiating trade deals is behind this spike in the index, and if he can follow through with his promises then we could see this index push even higher along with the stock prices of shippers.

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Expect the shipping sector to remain bullish in the immediate future as Trump settles into his Presidential role and we find out more on the policies he will be looking to implement. This sector has been under the radar for quite a while now, so it’s no surprise that it’s picking up steam with the speculation of higher demands as more favorable conditions will most likely be heading their way. Other industries you may want to follow during this Presidential change are banking, manufacturing, construction, biotech, oil drillers, and the defense industry.

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This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.

About the Author: Ross

Ross Cameron is a full-time day trader and the owner of Warrior Trading (https://www.warriortrading.com). At Warrior Trading, Ross hosts a Day Trading Chat Room and teaches Day Trading Courses to beginner and even advanced traders. Over the years he has offered day trading webinars and seminars for many large companies including eSignal, Trade-Ideas, Lightspeed Financial, and Speedtrader. In 2016 Ross was nominated for a Benzinga Fintech award for Best Educator.  You can also follow him on twitter @daytradewarrior.

Note: This post was originally published on ModestMoney.com. Check out their site for the latest investing news and analysis.

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