Long AGM Federal Agricultural Mortgage Corp

AGM Federal Agricultural Mortgage Corp. has quite a nice trading structure and today I went long AGM at 16.83.  AGM closed nicely into and above a key trading range as shown in the chart below and I think it has a good chance at moving to the top of the tradeable void between 17 and 23.82  Ideally the 17 range will transfer into support in the days ahead and we will see AGM move higher in a nice trending fashion.

Apparently farmers are going to be the ‘new rich’ in the months and years ahead as we see booming commodity prices support farmers and their land.  I think this is a potential plus for Federal Agricultural Mortgage Corp.

AGM is actually a pretty good trading or swing trading stock.  I keep it on my watchlist all the time and look for pullbacks to trend and breakouts out of ranges.  It has the potential to be quite volatile as well.  Definitely one worth keeping an eye on in my opinion.

agm20101227

The volume on today’s mini breakout was extremely light and is a potential warning sign.  I want to see some good follow through this week or at least holding strong the current range. 

There appears to be between 1 to 40% of potential upside from the 17 level from here.  AGM has seen some persistent moves in the past after it has achieved some initial running legs.  It will be interesting to see how AGM holds out this week.

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2 comments on “Long AGM Federal Agricultural Mortgage Corp
  1. JR says:

    I am still long ITMN. Will possibly consider closing position tomorrow or next day.
    My other long is GE. this gives me a balance with ultra conservative and quite aggressive.
    When I close ITMN, I will return, after I see how the wind is blowing in 2011. However I will keep my GE. How can one go wrong with a company that has a 20B cash reserve. Who know they may someday even spread a little around to the share holders.
    I was talking today with a long time friend who is a member of the NY Stock Exchange.
    He thinks C is the best long term play he has ever seen. I think so too, but I have yet to take a position, I guess I think too short term!

  2. Tom Tom says:

    My father is also still in GE as he used to work there for 35 years and still likes to trade it occasionally. GE seems to be moving north out of that long 2 year sideways cause building. One could make the case that it has lots more to go out of this range, given the amount of time that it has moved sideways.

    Also IBM looks quite good since it has gone sideways consolidating the previous strong run. It may want to break north out of the recent range again.

    Don’t know much about C, but thought they have a huge trading float and still government shares that need to be sold? Guess I view it more as a trade instead of longer term but that is just me.

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