STWD is a REIT with a very healthy yield. Sternlicht talked about his company's prospects and opined about many things last night but let's check out the charts and indicators.
In the daily bar chart of STWD, below, we can a small topping pattern from June to September. Prices made a peak in early August and then had a retest in September before turning lower. Prices are trading below the declining 50-day moving average line and below the flat 200-day average line.
The daily On-Balance-Volume (OBV) line rose for much of the last 12 months but it turned lower in early September telling us that sellers had become more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been weakening since late June and is below the zero line in a sell mode.
In this weekly bar chart of STWD, below, we can see that prices are below the flat 40-week moving average line. The weekly OBV line shows a strong move lower in September and the MACD oscillator is headed down to the zero line for a possible outright sell signal on this longer time frame.
In this Point and Figure chart of STWD, below, we can see an upside price target of $30.40 and we can see that a decline to $20.40 would probably weaken this chart.
Bottom-line strategy: This is an interesting technical juncture. The daily and weekly bar charts are suggesting more price weakness while the Point and Figure chart is bullish at this time. I know you cannot make money standing on the sidelines but let's review the charts of STWD again in a few weeks.