Wednesday, January 23, 2008

U.S REITs? It's alive!

As expected, it was a wild and woolly ride today. Hope for the financial sector appears in the offing, but do not be fooled by this rally. The gyrations of a bear market have tempted even the steadfast trader. The extreme movements in financials and materials stocks embodies the clash of will among monetary forces. Despite today's adventure, stick with commodities and defensive sectors.

However, the market is looking for signs of a bottom. Stock Trends offers little help with such fortune-telling. It can serve up a storyline as it unfolds, though. One of the recent Stock Trends NYSE Picks of the Week is Anworth Mortgage Asset Co (NYSE:ANH), a real estate investment trust that has developed price momentum over the past 13-weeks. The appearance of this California-based REIT, and its inherent assets - those mortgage-backed securities left for dead meat - in the Stock Trends filters gives us encouraging indications about the prospect for more stable housing and credit markets going forward. ANH will be a Stock Trends Bullish Crossover this week, its steadily building secondary trend is pushing the stock toward its May 07 high of $10.06. Every bit of financial market news that shows that ANH is still good paper is helping. Things must be improving - the company is proceeding with an 11-million share offering. The stock closed at $9.10 today. We will see what kind of appetite the market now has for this soured, but revived asset class.
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