Monday, July 20, 2009

Weekly Stock Pick

Buy Sell Hold
The Market Week Ahead

Earnings reports are in full swing this week. Dennis Lockhart is speaking this Monday, and Bernanke is speaking Tuesday and Wednesday. Jobless claims and leading homes sales reports are coming out on Thursday, and Consumer Sentiment is coming out on Friday.

My Stock Pick This Week

Is a REIT or real estate investment trust. Lots of pros and cons fundamentally to this company right now. An upward move in the stock is now presenting itself as a low-risk high-reward short-sell candidate for the short-term possibly. As the recent up move since the first week of March at 12 to 14 dollars a share, the volume has been steadily declining. I’m betting the run is over with for awhile. In case it’s not, stick to the stop-loss to live and trade another day.

Sell Short Annaly Capital Management. Ticker NLY

Sell Entry: 16.32 to 15.82

Stop-Loss: 16.50

Take Profit Areas: 15.43 to 15.06, 12.38 to 11.94, 11.52 to 11.1

Annaly Capital Management Company Profile

Annaly Capital Management, Inc., a real estate investment trust, engages in the ownership, management, and financing of a portfolio of investment securities. The company invests primarily in mortgage pass-through certificates, collateralized mortgage obligations, agency callable debentures, and other mortgage-backed securities representing interests in or obligations backed by pools of mortgage loans. Annaly Capital also invests in Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, and Federal National Mortgage Association debentures. The company has elected to be taxed as a real estate investment trust (REIT). As a REIT, the company would not be subject to federal corporate income tax, provided it distributes at least 90% of its taxable income to its stockholders. It was formerly known as Annaly Mortgage Management, Inc. and changed its name to Annaly Capital Management, Inc. in August 2006. Annaly Capital Management was incorporated in 1996 and is based in New York City.

Click here to review and trial the Trading Software we used in determining our short position on NLY.

Click the Annaly Capital Management Stock Chart for a larger view.

Annaly Capital Management Stock Chart