The Fed Futures Market is giving a 34% chance of a 0.75% cut at the next FOMC meeting. While the Employment Situation next week may be bad enough to push the markets lower, the chance of more Fed cutting seems to have built a short-term floor of support. While I’m not giving up entirely on shorts, I’m avoiding establishing any new short positions (unless the trade is just money waiting to be taken) as many short trades have been subject to whipsaw.
I prefer to stick with what is trending (Don’t mention Ag.). I’ve been watching a few of these mortgage related stocks making strong uptrends for months now, but have been waiting for a pullback to get in. The charts are showing that the time to buy in might be near.
I know that the Fly explained a while ago why these stocks were making money in this environment, but I do not recall the answer. Maybe he can explain again in the comments section. Or, I’m sure others out there know the answer. Any help would be appreciated.
I believe that all the stocks below pay better than a 5% dividend.
Wood,
New link…
http://leduc998.wordpress.com/
With regards to CMO, their exposure is 99% GSE bonds. Basically, as spreads widen, they bank coin and pass profits too shareholders, since they have REIT status.
We own NLY which has done surprisingly well.
In a completely unrelated matter, Shed, I was wondering if you could take a look sometime at GTLS and give me your opinion for a possible trade. I bought a small amount at $35.40 this morning. Thank you.
CPHD killing me today boca.
I like the gap up on strong volume for GTLS. I would like to see it close above 36 today. I would expect some flagging for a few days at least before moving again.
I think CPHD just had the usual post-earnings flogging delivered by this crazy market — do well, and share price gets punished.
I just bought back in, taking advantage of the drop. Still a long-term hold for me, I like their expansion into genetic testing.
thanks for the info on GTLS, if it does well I will leg into a bigger position.
Hope your shorts are doing well today.
Hey wood…
My Vix at 22 + the Dow component resistance model worked almost perfect… Dow down 400+ points… right on cue.
-gio
You should check out Ag..
some phrase are usefull there
Excellent article. I’m looking at some of these stuff for my website right now.