Wednesday, August 11, 2010

NLY Watch

The real estate investment trust Annaly Capital Management Inc. (NLY) has moved to bull phase on Person's Proprietary Signal (pps). However, the stock has been in a sideways trend since June, and the opening price on the last five signal days have basically been about the same. Talk about going nowhere. But the dividend is nice.

NLY $17.56

Arguably, any stock with a 15.49% yield doesn't have to go anywhere to keep me happy. I'll take that sort of dividend in place of capital gains anytime, as long as there's no capital loss.

The pps bull phase came on volume running about a third higher (so far) than the prior day. So although there's no news to buttress the signal, clearly traders are looking for good things to happen with NLY.

NLY was trading above $18 a share in July, but gapped down to the $17.50 level after the company announced a stock offering, diluting current shares. The decline, however, put the price in the range where NLY had traded in June and in May, so it wasn't a catastrophic move.

On the Person's chart, NLY is trading about halfway between the midline and the upper pivot.

Person's Table
ppspps openupper pivotlower pivot
NLY $17.56 $17.48 aug11 $17.77 +1.2% $17.03 -3.0%

Reversal Levels
  • $18.37, +4.6%
  • $18.25, +3.9%
  • $17.56 <== You are here.
  • $16.84, -4.1%
Bottom line: I like NLY. I own it for my own portfolio. It has a good yield, domestic exposure only (no foreign exchange risk), holds its price pretty well for a high-yield fund, and has good prospects as the economy recovers, at it sure must, even at its own disgustingly slow pace. Disclaimer
Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.
  • 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.

No comments:

Post a Comment