A few Shorts

    Posted by matt on 14th of Aug 2012 at 12:13 am

    AGNC - Chart Link - looks like a low risk short as the bounce back has been on light volume and the MACD and Histogram have not responded along with 5/3 Stochastic getting overbought.  The two following examples PCLN and AAPL show example of this MACD lag and 5/3 Stochastic low risk short.

    PCLN - Chart Link

    AAPL - Chart Link

    RE - Chart Link - old short idea, still looks decent, honestly I think one could have a starter short position with a stop at say 105

    AGNC follow up

    Posted by matt on 15th of Aug 2012 at 02:34 pm

    AGNC down today, reversed off the 20 day MA, remember earlier this week I mentioned this one as a short idea because I didn't like the lackluster MACD response on the bounce.  Set a stop, perhaps even as tight as yesterday's highs.  The 50 day MA is just below so mind that of course. I do currently hold a short position for now.

    the next three charts show PAST example of this MACD lag effect.  

    Agnc carries 5% Dividend.

    Posted by ronjuan on 15th of Aug 2012 at 02:53 pm

    yield is 15.3%

    Posted by chrshale on 15th of Aug 2012 at 03:04 pm

    yield is 15.3%

    Yes you are right 15%- $5.00 dividend/yr.

    Posted by ronjuan on 15th of Aug 2012 at 03:08 pm

    Yahoo shows a 14.9% dividend,

    Posted by matt on 15th of Aug 2012 at 03:04 pm

    Yahoo shows a 14.9% dividend, that might not be current. anyway what matters is ex dividend date, you just don't want to be short the day before the ex dividend date, and I don't see one close by.  Again it's  short term trade, not a 'marry it and put a ring on it' trade, expect to be out way before any dividend is paid

    Ex-Dividend Date is September 5th,

    Posted by matt on 15th of Aug 2012 at 03:09 pm

    Ex-Dividend Date is September 5th, I didn't expect the trade to last more than a week anyway

    AGNC follow up

    Posted by matt on 16th of Aug 2012 at 10:56 am

    AGNC continues to pullback via the MACD lag, short is working for now, testing the 50 MA now.  Remember this is a trade and don't hold it into the Dividend date, which is Sept 4th.  

    AGNC continues to sell off,

    Posted by matt on 16th of Aug 2012 at 12:18 pm

    AGNC continues to sell off, lost the 50 day MA, it's off the lows, but nice short trade so far in a strong market.  I've covering some shares now and moving stop down

    Remember:  if you are short

    Posted by darnelds on 14th of Aug 2012 at 12:38 pm

    Remember:  if you are short a dividend stock such as AGNC, you pay the dividend.

    so if bac is 0.04

    Posted by ax11 on 14th of Aug 2012 at 02:27 pm

    so if bac is 0.04 annually, how much do you actually pay if you only hold it for 2 days... 1000 shares at 8.70. which is 8700....

    If you are short the

    Posted by mcheberger on 14th of Aug 2012 at 02:40 pm

    If you are short the stock on  the next Ex-Dividend Date of September 5th you will owe the quarterly dividend of 1 cent/share, or $10 if you are short 1,000 shares.

    ax11 - you only pay

    Posted by steve on 14th of Aug 2012 at 02:38 pm

    ax11 - you only pay if you remain short through x-dividend date.

    Darnelds - thanks for pointing

    Posted by steve on 14th of Aug 2012 at 02:06 pm

    Darnelds - thanks for pointing out that about dividends when shorting. Just something to be aware of on such stocks.

    AGNC bouncing to the 20dma

    Posted by frtaylor on 14th of Aug 2012 at 10:28 am

    AGNC bouncing to the 20dma right now.  I took a small short, 34.48.

    you might want to check

    Posted by randy on 14th of Aug 2012 at 09:36 am

    you might want to check the AAPL chart , it is dated dec '11. ( would not have been a good short )

    randy I don't understand your

    Posted by matt on 14th of Aug 2012 at 02:46 pm

    randy I don't understand your comment about AAPL chart dated Dec 11? That was an example of the MACD lag, provide a quick short which was in Aug, albeit was a quick short, but was meant as an example about MACD lag.  it was not a swing

    I misunderstood the AAPL chart

    Posted by randy on 14th of Aug 2012 at 02:48 pm

    I misunderstood the AAPL chart post being used  as an example, I was thinking of today's price in the 600's. My mistake.

Newsletter

Subscribe to our email list for regular free market updates
as well as a chance to get coupons!