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AG Mortgage Investment Trust

04/08/13 02:12:14 PM
by Koos van der Merwe

The crash of October 2007 was caused by banks who combined good and bad mortgages in a product called mortgage backed securities that they sold to the market.

Security:   MITT
Position:   Accumulate

The property market in the USA is starting to recover. Buyers are picking up bargains at low prices, and because interest rates at banks being are as low as they are. With the Obama Administration watching bank speculation closely, mortgages are looking attractive. So when you comes across an investment in mortgages that at a price of $23.00 offers a yield of 12%, it catches your attention. This is the case with AG Mortgage Investment Trust.

Figure 1 Weekly Chart
Graphic provided by: AdvancedGET.
The chart in Figure 1 is a weekly chart of MITT with an Elliott Wave count that suggests an ABC correction after a WAVE V rise. The abc correction is suggesting a target in the region of $23.68. The RSI indicator is confirming this correction.

Figure 2 Daily Chart
Graphic provided by: AdvancedGET.
When you look at the daily chart in Figure 2, the trend of the weekly chart in Figure 1 is confirmed. The RSI indicator though, although oversold, has not yet suggested a buy. Wave c has yet to be confirmed.

Figure 3 Omnitrader Daily Chart
Graphic provided by: Omnitrader.
The chart in Figure 3 is an Omnitrader chart where the VOTE line has not yet suggested a buy signal. The VOTE line is a summation of the four strategies shown in green below the VOTE line. Of the two indicators shown on the chart, the RSI 14 is oversold, and the Indicator TDIJak, is suggesting a buy.

With the interest paid as high as it is, and with a buy signal possibly being triggered in the near future, this is a share I would definitely place on my watch list.

Koos van der Merwe

Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.

Address: 3256 West 24th Ave
Vancouver, BC
Phone # for sales: 6042634214
E-mail address:

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