Crystal River Capital, Inc. (CRZ)

CraigCa (64.19) Submitted: 12/23/07 4:29 AM : Start Price: $11.37 CRZ Score: 52.32

CRZ generated a sell signal in August, after a strong sell-off in July, which took the stock from about $24 a share to below $12 a share. The downtrend actually started in June, and pushed the 10-day moving average below the 50-day moving average at that time. The 10-day average moved below the 200-day EMA in July, and the 50-day moving average followed it below the 200-day EMA in August. In August, the 10-day average started an upward trend, peaking in September. It then trended down until December, when it started rising again. This most recent rise has pushed the 10-day average above the 50-day moving average, signaling that a trend reversal may be in progress. However, this is a recent uptrend, and has not reversed the negative divergence of the longer-term trends. Therefore, I am keeping and reiterating my underperform rating on this stock at this time, but I am assigning the rating a negative connotation to highlight this potential trend reversal that could be in progress. I would be leary of initiating any new positions in this stock at this time, just in case a trend reversal is in fact in progress. Caveat emptor.

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