Thursday, July 20, 2006

Trade Ideas: JTP

Shorts are hammering the market as another volatile rally bites the dust. For the last 20 minutes there have only been 3 suggestions on the Trade Ideas scan: JTP (the most frequent), ESE and JPS.

In the case of JTP, Thursday's break of $13.40 has come on a modest increase in volume. Key resistance is at $13.60, part of a base which dates back over 2-years. Another tier of resistance can be found at $14.50. Not the most exciting of movers in early afternoon trading. The yield on the fund is 8.20%.

The Nuveen Real Estate Income Fund (JRS), Nuveen Diversified Dividend and Income Fund (JDD), Nuveen Preferred and Convertible Income Fund (JPC), Nuveen Preferred and Convertible Income Fund 2 (JQC) and Nuveen Tax-Advantaged Total Return Strategy Fund (JTA) have adopted a managed distribution policy under which the fund seeks to maintain a stable monthly distribution level, stated in terms of a fixed amount per common share, representing net investment income and net realized capital gains and, if necessary, return of capital. The Nuveen Equity Premium Income Fund (JPZ), Nuveen Equity Premium Opportunity Fund (JSN), Nuveen Equity Premium Advantage Fund (JLA) and Nuveen Equity Premium and Growth Fund (JPG) intend to make regular monthly distributions based on their past and projected performance. JPZ, JSN, JLA and JPG expect that a portion of their distributions will represent "qualified dividend income" taxed at a maximum federal income tax rate of 15%, and the balance will represent a combination of long-term and short-term capital gains, and/or a return of capital, which in most cases represents net unrealized gains.

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