Garden Hose Pattern on a High DY REIT... Hurray for Volatility
NLY is a bit less bearish in comparison to the other stocks in its peer group of REIT's with Div/Yield over 10%. You can see this since its P/E ratio (using FFO) is much higher, probably due to consistently high analyst ratings and their various reasons for evaluating it with neutral to positive ratings.As of recently, it has seen a weakness in volatility. In a triangle pattern, it approaches the 10.11 price point. At this point, the trend will see an arc, and a breakout will occur. Nothing trades flat forever, because every living thing has heat. I call this a garden hose pattern... because it sort of looks like a hose spraying a jet... and because I want to...
Set your price points around 10.11 and look forward to a new wave of volatility. These 3-4 cent daily arc heights are stupid.
The price/book value is a bit high, so I believe this is a good point to see a market correction. I would say my advice would be to short, if I had to guess. There may be some upward momentum left, but it will not sustain for long.
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