Eagle Bulk Shipping is having an overwhelmingly rough day in the market today. This is something few would have expected following last week’s dramatic gains. Below, we’ll talk about what we’re seeing from the stock, why, and what we should be watching for with regard to EGLE ahead.

What We’re Seeing From EGLE

As mentioned above, Eagle Bulk Shipping is having an incredibly rough day in the market today. Following up on losses realized yesterday, the stock has been in the red since the opening bell. Since then, it’s been inching further and further down with every passing minute. At the moment (1:14), EGLE is trading at $5.91 per share after a loss of $0.63 per share or 9.69% thus far today.

Why The Stock Is Falling

As mentioned above, EGLE, like many in the shipping sector saw dramatic gains last week. Ultimately, these gains were fueled by two things. First and foremost, the Baltic Dry Index surged. On top of that the fact that President-elect Trump won will likely benefit the shipping sector as a whole if he follows through with his promises.

Nonetheless, the shipping sector is correcting in a big way this week. One of the reasons for the drop is that the bubble is popping. With many in the sector gaining 1,500% in a few days, the sector was never going to hold such big gains. Also, helping along in the declines, we have political uncertainty. While Trump may be good for stocks like Eagle Bulk Shipping if he follows through, he may not follow through.

What I’ll Be Watching For Ahead

Moving forward, I’ll be keeping a close eye on EGLE and the shipping sector as a whole. As we saw last week, these stocks have the potential to become a day trader’s dream. I’ll also be keeping a close eye on Trump and the Baltic Dry Index. Any changes to Trump’s plan or the index can lead to big movement in EGLE and others!

What Do You Think?

Where do you think EGLE is headed moving forward? Join the discussion in the comments below!