Redwood Trust Inc

RWT is in a confirmed Stage 4 decline with sequential lower highs and lower lows and price trading below all major EMAs, establishing a bearish medium-term bias. Short-term timing remains unfavorable for bulls as no meaningful pullback or relief bounce has emerged, so the tradable side is to engage on weakness now.

• ↑Mortgage banking volume topped $8B for two straight quarters.
• ↑Legacy assets trimmed to 12% of capital, aiming for <5%.
• ↓Leverage ratio near 2.9x increases funding costs and margin squeeze.