NLY Watch

Annaly Capital Management (NLY), one of my favorite dividend plays, has gapped up this morning and is trading narrowly about 1% above Tuesday's close (at around $16.57 as of 10:15 a.m. Eastern).

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
NLY $16.57

At 10:15 a.m. Eastern

The chart shows bull signals galore: The macd and Person's Proprietary Signal moved into bull phase on Tuesday; the parabolic sar followed today.

Some may credit the rise to the "Cramer Effect" -- Jim said nice things about NLY on his stock picks posting. But in fact NLY has been on the rise since May 21 and has traversed 10% since that near-term swing low on that date.

Add that to a 16% annual dividend yield, and you have a prime example of portfolio goodness.

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Caveat: The broader NLY trend has been down since the $18.75 high of March 16. Unlike many companies, who hold on to dividend levels no matter how business is going, NLY freely adjusts its dividend payments to match results -- certainly a much healthier way of doing business, in my book at least.

Reversal Levels:

• $17.26, +4.2%
• $16.59, +0.1%
• $16.57 <== You are here
• $16.28, -1.8%
• $15.11, -8.9%
• $14.94, -9.8%

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Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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