Sometimes Opportunity Doesn't Last Long

In today's stock market, you have to be really nimble. In my last update, I noted that I would like to buy Annaly Capital (NLY) if the price dropped below $19.50. Unbelievably, the stock opened sharply lower and made it as low as $18.20 before quickly bouncing back to $20. This was a great opportunity that I missed. It seems that somehow, the bad news for Thornburgh Mortgage that was announced this morning effected Annaly. Now, it's absurd to tie these two companies together, although I can see how at first glance you might think they were in similar businesses. As I mentioned in my report on Annaly a few weeks ago, they are benefiting from the current environment. Each time the Fed cuts interest rates, the difference between their borrowing costs and the yield they collect on their investments widens. So, until the Fed is finished cutting rates or the stock becomes overvalued, I'm willing to hold my shares and collect the dividend. I wish the sale had lasted a little longer, but it just reiterates that you have to have a plan for each of your holdings and if you get a gift, you have to be very quick to react.