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Closing NAT Trade Early for 31% Profit

I have decided to book full profits & close the NAT (Nordic American Tankers Ltd) trade early here at 15.17 for a 31% profit since the Feb 12th entry. Longer-term traders & investors might opt to stay long while raising stops to protect profits. NAT is scheduled to pay a dividend of 43 cents per share to holders of record as of May 12th.

NAT was added as both a Long Swing Trade as well as a Growth & Income Trade back on February 12th. While I continue to see some bullish developments in the shipping sector, my decision to book full profits on this trade vs. partial profits or trailing/raising stops is a function of several things, including my preference to reduced long exposure in moving towards an overall net short exposure this week, as well as the fact that I believe that we have milked the bulk of the gains from NAT and that the R/R to remain long is starting to diminish in this particular shipping stock at this time. I also have several other shipping stocks both personally as well as official trade ideas on the site.

With that being said, each trader/investor should make their own determination as to whether they want to continue to hold some or all of their shares in NAT if they are in the trade. As NAT will now be moved to the Completed Trades category, additional updates will not be posted on NAT unless a new position is taken in the future.

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4 Comments

  1. Eric K April 27, 2016 11:20 am at 11:20 am

    Randy is this an overall sentiment issue driving your early closure of this trade (and thus applies to the other shippers as well)?

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  2. freezer April 27, 2016 12:06 pm at 12:06 pm

    Randy,

    Thanks much for keeping us posted. Along the shipping lines, nm got a harsh downgrade from Moody’s yesterday and the stock has been down somewhere around 13% accordingly. Still the price has not approached your suggested stop of around 1.20. Does news like this alter your ta based thinking or is News like this closer to background noise?

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    • rsotc April 27, 2016 2:31 pm at 2:31 pm

      No, a downgrade, whether on a specific stock such as NM or even an entire sector, like the shippers, doesn’t impact my outlook or analysis for the stocks. What does matter is the technicals & price action in the sector. I keep that watchlist of my shipping stocks up at all times when I’m trading the shippers, as I have been recently & still long several names in the group.
      I did lighten up on my holdings in the shipping sector but more so as a strategic move to reduce my long exposure overall based on my views that the broad market is likely headed lower in the coming weeks and as I often say; All ships are lifted with a rising tide just as all (or most) ships drift lower on a falling tide. No pun intended for the shipping sector although I think that statement would apply to them as well (i.e- broad markets down = shipping sector down).

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  3. lee1 April 27, 2016 12:57 pm at 12:57 pm

    Nice call

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