A couple of things to point out on the shipping sector, which I had recently highlighted with some bullish developments both technically & fundamentally. A quick glance of my watchlist of shipping stocks shows not a single company trading red today, simply a nice sea of green across the board. Of course like I often say, one day does not make a trend, although this does help to affirm that things may be firming up under the hood for the beaten down & unloved shipping sector.
Right after wrapping up the last video on the shippers the other day, I also added this alternative, white downtrend line to my daily chart of SEA (Shipping ETF). SEA gapped up above that downtrend line today & hasn't looked back since. While this is clearly a bullish development, SEA is now approaching the key 12.40 horizontal resistance level with the primary (red) downtrend line just above that. As such, although I continue to scale into various individual stocks within the sector, I have not nor will take a full position in the sector nor will I add SEA as an Active Trade until/unless both those levels are taken out.
With that being said, I figured today's developments in the shippers was worth noting & in case you missed the most recent video, I had covered the charts of some of the larger, more stable shipping stocks with larger market capitalization than the more speculative, potentially higher risk/higher return stocks that were covered in the first video.