Quick Win by the Algorithm: DRYS continues to be volatile

Quick Win by the Algorithm

On February 3, 2017, the I Know First algorithm had predicted a bullish forecast for DryShips Inc. (DRYS). It had a signal of 1119.59 and a predictability of 0.22. In accordance with the algorithm, the company reported gain of 34.21% in just 3 days.

DryShips Inc. has a contract offshore drilling business and operates drybulk carriers. The Company transports commodities such as major bulks, which include iron ore, coal, and grain, and minor bulks such as bauxite, phosphate and steel products. DryShips also owns Ultra Deep Water Rigs.

DryShips’s stock has been extremely volatile this year, having some strong ups and downs since the beginning of January.  The company released a number of press releases, resulting in volatile activity.  In fact, it sent out seven releases last month alone.

Also, the behavior-based TD Ameritrade Investor Movement Index, or IMX, which aggregates Main Street investor positions, rose 4.2%, to 5.71 in January, as retail investors increased their exposure to the U.S. equity markets to start the new year. Each month, TD Ameritrade pulls a sample from its client base of 6 million funded accounts traded in the past month. Once collected, the holdings and positions of the sample are evaluated to calculate individual scores.  The median of those scores represents the monthly IMX.  TD Ameritrade clients were net buyers of a variety of stocks, and between them, there was DRYS.

Add that to the anxiety for the release of DRYS’s earnings result due February 7, and it’s possible to see why the stock price urged in this short period of time, providing to the algorithm a Quick Win.

This bullish forecast on DRYS was sent to current I Know First subscribers on February 3, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.

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