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Adding BDRY to Bucket 2 Swing Trades
- Our theme of a broadening out of the rally (and at the margin out of momentum stocks) continues to play out
- The Dry Bulk Shipping ETF (BDRY) is one area where we see broadening out to as global geopolitical tensions and marginally improving global economic data could put upward pressure on dry shipping futures
- The BDRY etf is bullish trend on the Market Rover since January and the recent pullback now offers us an entry we like
- Important note: There is no options idea on this trade (see below in ‘Options trade idea’ as to why)
Entry: Buy the BDRY etf in the $12.50 – $13.80 area
Target 1: $14 Target 2: $15
Stop loss: A daily close below $12 would be a stop loss signal.
Options trade idea:
No options idea on BDRY as it is currently roughly a $13 ETF and has plenty of volatility. So we don’t need options leverage on this one. Also, the options that do trade on BDRY have lousy liquidity.
CHART
