Fannie Mae-No Politics (FNMA)

[Zargis]

You will see drops like this happen a lot with FNMA. Even though apparently the bill didn't even pass comittee, and news of this popped up on my screen, the market makers still used it as a point to drop below $4.40 and steal stop losses from retailers who are currently working - and think stop losses are 'a good idea'.

Their not except in very specific circumstances where you have already made enough and are ready to cash out before a large drop.

Personally, I don't think we will go lower than our current low which is $4.35 (based on the move up we just had)

It seems we are moving up now again and we rightfully should since the vote failed.

THIS IS AN OPINION.

Remember, large drops always have a retrace upwards - even if a dead cat bounce occurs. So it is never wise to jump ship unless you know its that or utter loss etc.

I do not believe we will go under $4.00 (or at worse $3.93 with $4.00 stop losses hitting) again, ever. The only chance of this going lower in my honest opinion is if a major shake happens immediately before we move up $6-10 overnight. Even then, I doubt any funds will want to risk losing their stake for the sake of greed.

Be well, be safe,

-Zargis