Ellington Financial Inc

EFC remains in a Stage 2 advance with a bullish Momentum Breakout and structural uptrend. The medium-term bias is Bullish, supported by Stage 2 classification and the Momentum Breakout pattern, while short-term price action below flat-to-declining EMAs indicates timing is unfavorable for immediate entry. Pullbacks into the rising EMAs and support zones warrant a stalking posture. Key risk is failure to hold EMA support leading to a Stage 3 transition if price breaks lower.

• ↑Q2 ADE of $0.60 covers $0.39 dividend payout, signaling strong cash flow
• ↑38% YoY growth in Longbridge originations (~$590 M), driving earnings momentum
• ↓Leverage exceeds 9x debt-to-equity, heightening funding and rate-shock risks