I am a psuedo-positive long!
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Support has now moved to $1.70 (427K)
Chenzo
Volume is actually higher then yesterday. A quick look has Approx 7.6mil compared to 4.4mil yesterday. Support showed up at $1.66
GL....Chenzo
The battle will be held in the $1.00-$2.00 range! Once it breaks that, the move to $5.00 will be much easier.
This is the range that the shorts have to defend and also where many hedge funds are accumulating.
Financial institutions require time to unravel all the toxic debt. Time is on our side and the Fed is on our side. We now can add hedge funds to the list of things/people that are on our side.
Look at Bank of America. Jan 2012 traded at $5.00. There were concerns of BAC being the next Lehman and how could they get out from under the Countrywide mortgage mess. The battle was waged at $5.00. The shorts needed to defend, longs were accumulating. Time allowed BAC to work through their problems and come to a settlement with FNMA. BAC now trades at $14.50+, almost a 300% increase!
FNMA has given us an indication of how strong the move can be. Be patient and buy the dips. Accumulate like the big boys. Once this breaks $2.00, $5.00 will come quickly.
Chenzo
Haven't you used up your 15 posts per day limit?
Mods.....Please!
I see this playing out that 3Q 2013 we have paid back our debt to the Treasury. Then talks really heat up. At the point of payment in full, there is no logical argument to keep FNMA under c-ship. Except to help fund the budget. That's were the capitalists step in and announce it unconstitutional to still reign over FNMA.
FNMA gives a few billion extra, as interest, good faith, and to say thank you, and we are on our own come Jan 2014. Uplisting happens quickly from there.
Chenzo
Maybe I am not reading your advice correctly, on one hand it appears that you are waiting for confirmation:
I'm not willing to wait for a confirmation. A move from $1.40 to $2.10 is a 50% gain that you will miss. Also...
$10,000 will by you Approx 7100 shares @ $1.40. That same $10,000 will only get you 4700 shares @ $2.10. You have significantly reduced your future profits.
Something that you need to know. The breakout over $2.10 will probably not happen the first attempt. Shorts will beat the price down knowing that that is the last barrier. Remember, the battle will be waged from $1.00-$2.00. After that, the lid comes off and huge runs will happen.
The breakout will occur due to news, probably premarket or overnight. If you wake up to that and are waiting for confirmation, you will have it, and will have to pay $2.80-$3.00.(buying at the top?) Now how many shares will that same $10,000 buy you?
Be careful waiting for confirmation, it may cripple your future profits.
GLTY
Chenzo
I did the same after it missed my bid at $1.36. Happy with the close, maybe shorts covering. Like I stated last week, the fear of holding over the weekend is much less now that these lawsuits have been filed.
FNMA pushed down all week, nice to see a nice rebound into the close. Looking for positive week next week
Chenzo
Missed my bid at 1.36.......let's see if we can pullback once more and get my order filled
Chenzo
My thoughts exactly....thank you for expressing my feelings in much better words then I could have done
Chenzo
$1.36 is almost a 7% haircut. I'll take my chances we rebound off of that. We should also be way oversold at that point. If not I'm a mouse click away from getting out.
Chenzo
I'll be expecting one more a.m. washout. Looking to enter at $1.34-1.36ish. Sold today at $1.48 when it looked like $1.50 wouldn't hold. Took a small loss, that's my game plan. Nibble at the dips, when resistance breaks get out.
Chenzo
The short answer, I believe, is yes. The fed is going to slowly pullback with the stimulus. It will not just shut the faucet off. This may take a couple of years. With FNMA reporting 8-9 bil per quarter profits, time is on our side. Let this slowly grow, and pay back, as the economy strengthens.
And remember this, there is no way the govt dissolves FnF while their is a lawsuit pending. Absolutely no way!
There will be dips, use them to take a position.
Chenzo
Dow futures up 150, bank futures are all up. Lets see if this rises our boat also
Chenzo
Hope a lot of you chart watchers followed me and got in at $1.50....time to make some money. If FNMA can finish up today, we will make a bullish engulfment. A very strong formation for us longs.
Chenzo
I was unable to follow the posts during trading hours, but if Blue posted his sell, then, in my opinion he is not a pumper. We all have a right to buy and sell at our own discretion. The stock market, and more so FNMA changes quickly and one must adapt to these changes. Rarely do we get the results we expect. So one must alter their plans.
I for one appreciate that one exposes his or her trades to the board. The more opinions and strategies we have the better we will be.
Chenzo
Gotcha, I didn't realize the terms of your brokerage account. Being shut out for a couple days makes your decisions alittle more difficult.
Chenzo
NT....I do not have PM capabilities, thus I am unable to respond to your messages. If you wish to comment, please post a response to my post.
Thank you
Chenzo
Your mistake was not the buy at $1.71, there was some support there. I might have made the same trade. The mistake you made was not selling once it broke. We had a small bounce between 1:30 and 2:30 and you should have gotten out at $1.67.
Keep your losses small and live to fight another day (or trade). Even if you sell at 1.67, there is now resistance at 1.72. Odds are it bangs into (now) resistance and pulls back, you can buy back in then.
Not criticizing, just trying to help. As I said, I would have made the buy at $1.71
Chenzo
The most important thing that these law suits do is remove the risk that FNMA will be unwound in the near future. There is absolutely no chance that the govt can/will wind down FnF while these lawsuits exist.
Chenzo
Not my "pseudo-positive long" colors?
A stock with so much potential (potential that seems as if it is only noticed by the posters here) trading at $1.43. And can't seem to get any traction no matter how good the news is? If you are not skeptical, you must be a very stubborn person.
Wait for CC, wait for ASCO, wait for lawsuits, wait for CC.....it just goes around and around. And from the posts today, I am not the only one who is ready to say "the emperor is naked"
Chenzo
ADDED: I sometimes think that its the length of time that some here have owned this stock that makes it impossible to be objective.
Apparently you and I are the only two that noticed it. Or care to notice it. This board seems to be running on hope.
Chenzo
I am going to say we broke the 50MA. Shorts pushed this down to 1.62 because they know that at that PPS, the 50MA is broken.
It now gives them momentum tomorrow morning to push it further down. That is what I feel will happen tomorrow. I am guessing to $1.50. Traders who bought in at the 1.65 area will have a 10% loss at 1.50 and can be shaken out. Those looking to re enter will see this as a good entry point.
I agree, this is one of those "round number" rest stops. I will be looking to enter here also, and hope for a bounce back.
I don't wait for confirmation, I feel you can miss too much if you do this. The trend is up....I want to be in as much as possible. If it goes against me, I am just a mouse click away from being out.
Chenzo
My sell today (@1.68) was based more on what I perceived to be poor market reaction to the Sunday lawsuit news.
I had my finger on the sell button the entire last hour on Tuesday. When it held $1.72 I stayed in. Didn't wait that long today. I feel we will pull back for a few days, let the longs accumulate, make a higher low, then move higher to $2.00PS.
This is how I am playing this stock. I will take profits when it looks tired and load back up at lower prices. I will not be greedy and will not stay out too long.
Sold today at $1.68 when it looked like we would not close above the 20MA of $1.72. At that time I figured FNMA would test the 50MA of (1.63). Really surprised it didn't hold. I will be looking to buy at $1.50 in the next two days.
This is how a stock like this has to be played. I banked almost 20% in two weeks. Will buy back in on the pullback. Too much upside potential.
Chenzo
The funny thing is, the sell off usually begins just as the round number is reached. If $10.00 is the sell point, then expect the dumping at $9.95-$10.05. I'll gladly sell at $9.99
Chenzo
At almost 37% short interest, this could be a very interesting week. Time to light the fuse!
Chenzo
NT...thank you for your concern, my account level will not allow me to reply through PM. Just having an intelligent discussion with someone who shared a different opinion. Maybe help others who are not so savvy to the tricks people in the market play.
No need to worry about my emotions affecting my trading. I have been trading for many years and do my own DD.
Chenzo
Now that is something we can agree on!
Good Night and God Bless,
Chenzo