Sunday, March 27, 2005

Keeping An Eye On Mortgage REITs

Mortgage REITs have had a good run, but the sector will be scrutinized in the changing interest rate environment. One that is reputedly "well-managed" is Annaly Mortgage Mangement, Inc. (NLY). If you check this chart you can see that the companys' stock just broke through its 200 day moving average.

Update: Thanks to Ms. Penelope for pointing out that NLY moved back above the 200 DMA last week. A better chart is available in the comments to this post.

4 Comments:

At 1:31 PM, Blogger Ben Jones said...

Hi Ms. P,
Your chart is more accurate, thanks for letting me know. I use Yahoo because it is faster but is is an inferior tool.

In highlighting NLY I hope to find early indicators of a turn. I trust you are having a good Easter. Thanks..Ben

 
At 3:55 PM, Anonymous Anonymous said...

It should be noted that Jim Cramer has been screaming "BUY" to this stock for the last week. I have heard him say "Buy NLY" like 6 times over the past 4 trading days.

This could be either a turn around, or a short lived rally off the 200MA

 
At 7:37 PM, Blogger Ben Jones said...

anon,
the fundamentals are starting to line up against the mortgage firms..ben

 
At 10:42 PM, Anonymous Anonymous said...

3/26/05
I would say it's in an early stage 4. Week before last it went below the 200 day on higher than average volume that was higher than the week before (2 bearish signs). Last week it popped back slightly above the 200 day, but on lower than average volume that was lower than the week before (2 bearish signs again

O'Neil gives this industry a D, (second worst industry group) It's also being sold off.

It had a really short lived stage 2 in about Dec. Looks like Jan and Feb it started the stage 3, which is where we can watch for a short.

I would say this is a stock to watch for shorting. It's an affordable price too. I'm reading it as Annaly Mortgage Mgt. Hmmm. A mortgage stock in some trouble. Mortgage Industry now in the second worst group. I smell a downfall. Real estate may soon follow.

Interesting stock Ben! I think the chart on Yahoo wasn't quite accurate. But on IBD weekly chart matched Bigcharts.

 

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