FNMA ... Money in the bank
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Buy on rumor, sell on News. That's what happened here today.
It's important to understand that even in a bullish uptrend, there will be red days, and dips.
Looking at tomorrow will give you more guidance as to what the trend is. Besides yesterday, .85 is the highest it's been in about a month.
Technically it's a HOLD.
Other than that I feel that there is some big institutions picking up large orders here and there. Watch for these.
I will be holding my FMCC shares. All i know is tomorrow will be interesting.
The idea of winding down is to get more competition in the GSE market.
Also, making GSE's private, to ensure they are not backed by Tax dollars.
So essentially the end result is a more competitive market with FNMA being private.... why is this not the case, weeelllllll.
The profits aren't high enough to encourage these companies to enter the GSE market. So the real question is how do u raise the profit level??? and if you raise the profit level, FNMA will also have higher profits.
In summary:
If FNMA becomes smaller and private in a competitive market, they will make more money, or at least margins will be much better. But hey, were still talking billions.
FACT OF THE DAY:
GSE'S ARE NEEDED IN OUR ECONOMY.
Backing the mortgage industry with private or public institutions is essential. I posted a while back that when SALLIE MAE( they backed student loans) became private...in 7 years, you would have earned close to 75 times your money and received quarterly dividends.
Banks have to sell these mortgages because they need to get more money to make money. Banks wouldn't make much if they gave loans and that was it. They need to sell off the loans in order to make more loans... and sell off those loans... to make more loans.
This is how it works.
Oh, and just to inform.... when large institutions want in, they just don't put a 10 MILLION Dollar order in on one day.
They put small amounts in day after day after day in order to not dramatically drive up the pps.
My thoughts to those who may fear.... WATCH L2 and U will see some large orders hit the market. :)
Even with today's red close, the MACD moved closer to crossing because today's pps was still higher than 2 days ago.
I think it's funny because most here, "including myself" are so used to some OTC crap news, and a big day up and then a sell off. Everyone trying to get in and out so quick, which is fine.
Bigger companies take more time to fully see what is going on here. That is where the real money will come in.
Just think, after today... hedge funds, mutual funds and the connected financial institutions are now evaluating FNMA. They just don't see the news this morning and think.... HEY, throw 2 million in FNMA. As time goes on, and which we've begun to see as BLUE has so diligently linked us to... is the fact that major companies are starting to buy. These are not flippers or swing traders, these are long term investors that will soak up the shares on the market making us have steady gains week by week.
Well, the Parabolic SAR has given a strong buy signal.
Also the MACD is about to cross giving a strong buy signal.
ADX is close to 40 which signals a strong trend with the recent increase in pps.
Aroon shows there is a strong trend upward.
americanbulls.com/SignalPage.aspx?lang=en&Ticker=FNMA
Americanbulls.com.... the link above mentions to still STAY LONG. No pattern exists. Charting and candlesticks currently have no indication for a movement up or down.
Basically, today may have been a simple sell on news. One day out of a series of many isn't enough to prohibit or alter a Bullish trend , which has begun.
Some indicators such as Scholastics and Williams%R are invalid to use because they are historical priced based indicators and are somewhat flawed for strong uptrends.
Runaway gaps are good. Filling the gap is just a self fulfilling prophecy
Close of day is the most important technical indicator of pps movement. TA 101
Technicals look amazing. MACD crossover about to happen. FNMA looks like it will close green, will FMCC as well? If it does, uptrend will continue. IMO
Time to get in for the MACD crossover .... weeeee
Looks like the sell off on news is over. If this closes green, TECHNICALS will be heavily favored of a bullish uptrend continuing.
Best of luck to all
Profit taking always happens in an initial bullish trend. People see that double digit percentage and hit the road.
Bullish trend has been established. It will have some dips, bit over all it will continue to increase in pps
I hear ya. Looks amazing technically.
And the news for FNMA isn't even out yet lol
U told me 30 cents and now you're changing it to 80.
Cover ur position now!!!!!!!
U are risking way too much as a beginner
Parabolic Sar Indicator looks awesome right now. Good report that is coming soon should make this pop.
This is for those who care about technical analysis.
Williams %R is looking better too.
10 day and 20 day moving averages look great.
High volume in next 2 days through the 10 Day MA is another technical analysis, very good sign.
Then again if this more than doubles, it will dip into your margin funds. Very risky my friend.
Artificial flavors are sometimes better than the original
:)
However, I fail to see how making billions is artificial in a recovering economy that is trying to continue to benefit home ownership.
PPS is based on market behavior. If you get in ahead of the crowd u make the most money. Going against the crowd does nothing but lose u money.
I feel investing now is getting ahead of the crowd. But best of luck to you. Hopefully ur not shorting on Margin. You could really mess up ur life if doing so. Make sure its your own cash.
Best of luck to u.
The key is that government isn't going to allow interest rates on homes to go up as much as 2% in a recovering recession.
The government will continue to back FNMA even if they go private IMO.
Government will always continue to subsidize the housing mortgage industry for the benefit of society.
This might sound stupid but is this stock only traded with options trading
I'm new to this... What would make this ETN go up?
thank you for all the research you have done. Those influenced by you will be very very happy when this explodes out of the park.
:)
"move as much as this back into the private sector as quickly as can be done"
Privatization. Here we come. This could be a 10 to 20 bagger.
I can't think of any reason this would be under $10 a share if they are made private again.
WSJ: Should Fannie and Freddie be wound down?
Mr. Watt: There is general—almost unanimous—consensus that we should move as much as this back into the private sector as quickly as can be done. There’s virtual unanimity.
http://blogs.wsj.com/developments/2013/05/02/qa-what-watt-would-do-as-fannie-maes-regulator/?mod=yahoo_hs
See my last post. Shorts are betting against technical analysis.
Which is fine. Its not always accurate.
sideways trend is often regarded as a period of consolidation before the price continues in the direction of the previous move.
Straight from the link i just posted
http://www.investopedia.com/terms/s/sidewaystrend.asp
You do realize that a sideways trend happens to usually be followed by a breakout upward.
Oh wow, so Yahoo finance includes the preferred shares with there conversions in the count of shares outstanding.
This is awesome.
I wonder if anyone else on here knows for sure
Does that amount include the preferred shares with there conversion to common?
Just keeps looking stronger and stronger and hedge funds are joining daily it appears.
Some news must of leaked because FMCC... Also just had huge bounce and is green
At what price
FMCC just hit high of day
http://www.bloomberg.com/news/2013-04-30/bofa-seeks-to-toss-u-s-s-1-billion-faulty-mortgage-suit.html?cmpid=yhoo
Banks are starting to be blamed even more. FNMA and FMCC are starting to look like just the victims
Market Outlook The bulls have strong evidence on their side and this evidence prompts us to make a bullish bet. The bullish pattern that was previously identified is finally confirmed and a BUY signal is generated. It is probably the right time to be part of this boost and bullish market sentiment. The market is telling you about a new profit. Do not miss this chance.
http://www.americanbulls.com/SignalPage.aspx?lang=en&Ticker=FNMA
Ok, that sounds good. So the market cap right now is about 40 Million.
I like your thinking, haha. No , but honestly I'm just trying to figure out what the Diluted shares outstanding count is.. with all preferred shares converted.
Nobody knows as far as I can see. Any rough estimates?
You voted on it 1 billion?
ELTP: 690,000,000 SHARES OUTSTANDING AFTER CONVERSION OF PREFERRED SHARES TO COMMON
Correct me if I'm wrong. thanks
After the preferred shares being converted, what is the shares outstanding amount?