[quote=livinincali]I’d certainly expect a bounce at some point, but it tends to be easier to play the trend rather than the counter trend rallies. Counter trend rallies can be quite explosive but they are so incredibly difficult to time so I usually end up breaking even at best on a counter trend rally. By the time I realize the bounce started and the bounce is over I’m net nothing.[/quote]
I totally agree. I’m actually doing both. I’m playing the trend with SOXS, SPXS, puts, etc. But I plan on keeping AGNC for a long time, so, I’m buying at every dip, especially ones that put the price below the bollinger band. I see the longer trend for AGNC as up (it’s after all a REIT, so if RE recover, it’ll go up), mid term, it might be bearish tue to tax unknown, and short term, it seems bullish for me due to technical. I could be completely wrong on this, but that’s my personal analysis. Even if I’m wrong and they stay flat, the dividend will still help. The only way I could lose is if they either cut dividend or their stock price goes down faster than their dividend rate.
