Is no surprise. With volatility in markets high, smart move for investors and traders to buy pre CIM ex div. Why not go for the big dividend payout. Get div and even if share price falls similar amount on that day, run up in price will help cushion drop(if get in early enough), and good chance that will have another opportunity for a great swing trade with other oversold stock after make easy money with CIM swing trade.
If you are swing trading Chimera and bought in $13.80's or lower, then yes, sell before ex div, because price will drop. But, best to not trade at all, and stay long, with price rising into ex div date makes for win/win. And, if the price drop, after ex div, is less than expected, and price rises again going into earnings and next ex div date, then swing trader will have hard time timing next entry point. Long holders get big dividend payout, overall price appreciation, and can buy more shares with dividend money if share price takes a dive for some reason.
I am long and strong and making money!
Nice to see solid move higher today. I thought for sure that the rate hike would happen. Glad that I held on to CIM despite thinking that. Nothing like getting a big fat interest payout, and stock price appreciation leading up to ex div date! Was in the right reit at the right time!
I find it fascinating how powerful an impact market moves have on investors psyche. When in correction mode and panic eases in, though we post statements to display our resilience and strong abilities to ride out the crash, we all begin to panic, and the chatter comes out. We look to find comfort by sharing with fellow investors who are also watching their financial sip sink before their eyes, And we take pleasure in out arguing the handful of Chicken Little's who start coming out of hiding and boast about how right they have been all along that the world is coming to an end after all.
When the panic period abates, we all calm down and take a mental respite. The conversations are less urgent, and we tend to care less about one another's opinion and we start adapting to the calm financial environment, even if we remain with a wounded account. The end of the volatility beast is a welcome time, and hopes of future financial growth starts to emerge.
Wee are happy regarding many of the decisions that we made during the ride down, and sad about a few bad decisions.
We realize that there is more to life than just worrying about whether the Dow will be up or down by market close.
elan sounds spot on. Theoretically, when see a change in behavior of sector with paroxysmal moves ie bad news, sector rises after prolonged period of being out of favor, suggest a bottom. Expect more dramatic moves higher over next 3 to 6 months. I will miss low prices at the pump!
CIM seems to target $14 of recent. Has fared well over last 3 months despite all of the turmoil and market volatility. Big div around the corner! With high market volatility, expect CIM to continue to hold up well as a relatively safe haven holding.
Looks like we are forming a bottom eyecandy. OIL dips are less dramatic, and frequently rebounding off lows of the day. That dramatic run up at end of August was like a prelude of where OIL will head over the next 3 to 6 months. Economies should start improving all over the world soon. Everyone at bottom, can only go up. Just hope the Fed doesn't muck it all up!
Appears that the buy on dip strategy is back. This seems to be true for OIL and market in general. The 10% correction has finally happened, and the market is adjusting to start its trend higher. History doesn't always repeat, but does remind us of what market turmoil does to our psyche. Recall this:
'Asian Financial Crisis'
Also called the "Asian Contagion", this was a series of currency devaluations and other events that spread through many Asian markets beginning in the summer of 1997. The currency markets first failed in Thailand as the result of the government's decision to no longer peg the local currency to the U.S. dollar. Currency declines spread rapidly throughout South Asia, in turn causing stock market declines, reduced import revenues and even government upheaval.
The Asian Financial Crisis was stemmed somewhat by financial intervention from the International Monetary Fund and the World Bank. However, market declines were also felt in the United States, Europe and Russia as the Asian economies slumped.
This taunted us for several months, then the markets recovered, and off to a bull run 'til tech wreck in '2000.
You have great patience. My fear is that contango will erode value of OIL over time, and may require higher and higher WTI price to get back to break even. the rocket ride up last week was promising, and moves like that make trading OIL an easy way to swing trade, and make little profits here and there to lower cost basis. Right now, I only have a small amount beyond my core holding. I will try to resist adding more until OIL in low 7's again. (I hope it never gets there, but if does I will start loading up again, and hopefully get another rocket ride up, like last week!