Great Lakes Dredge & Dock (GLDD)


"GLDD is the largest provider of dredging services in the US conducting business to maintain and deepen shipping channels, reclaim land from the ocean, and renourish storm damaged coastline. The company also conducts around 25% of its operations internationally with a strong focus in the Middle East." (company website)

GLDD 4-month chart
GLDD 1-year chart

Sell short

Sold short 500 @ $6.42.

After bottoming in March, GLDD recovered nicely until the peak in September, but the uptrend reversed after that. The 50-day moving average has begun to fall again. Although GLDD pushed above the 50-day last week, it has been unable to sustain that level, and it looks like it will fail the test of resistance.

  • Percentage price oscillator (PPO) — above the signal line, but turning down
  • Volume — falling off rather sharply

Based on technical analysis, MarketEdge calls GLDD an "avoid" but shows signs of a "possible trend reversal" and notes that it is "overbought."

Buy to cover

gain Bottom line

Bought 500 to cover @ $6.92.

For no apparent reason, somebody yesterday bought a lot of shares at premium prices around 12:30pm ET. Although the price didn't hold through the end of the session, that was enough to give it a boost again today. There was no reasonable alternative to covering and taking the loss.