Fannie Mae-No Politics (FNMA)

[Zargis]

I have 2 questions for chart technicians


Do we have a fannie load of gaps from this morning to fill?

Do gaps go out the window or maybe they are less relevant when this kind of news moves the share price?

1: No. There was no gap, we opened at level and retraced a penny down to $4.23 before moving up. (multiple trades, not a single cheat trade)

2: Yes, gaps are less of a concern when firstly - we hit the NASDAQ. and Secondly, when big news hits even if gaps are created, they may not fill for weeks. See last run and how we had a gap at $3.13ish that only filled weeks later after the high.


With the larger market NYSE / Nasdaq / DJ, etc. Gaps are more mythical than they are on the OTCBB. Pink sheets gaps often do fill, if not always. I can't say 100% they always fill as I haven't traded for more than a few years, however, malebaboon has indicated a 100% fill rate on his 15 or so years of experience.


Personally, unless news 'adjusts' the stock price even on the NYSE / Nasdaq, gaps 'often fill', but, may not go all the way back down to the same penny.

i.e. if stock AAA goes from a close of $15.00 to an open of $20.00 on news it may go up some more and hit $24 or so in the next few weeks, then, often, they will go back down (as is common with all stocks), if the news is short lived it will esspecially retrace and may hit $16.00 creating a new lower low, but not entirerly filling the said 'gap'.

so on the big boards some do some don't. You can still play it safe usually and expect move-downs after gaps at some point.




Also my ranges given were spot on. I would advise evaluating this current scenario, and exactly what created the common factor for your future evaluation / charting of other tickers.


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Be well,

-Zargis