Fannie Mae-No Politics (FNMA)

[Zargis]

Well, since this was 'the day of reckoning' and I had to do some chart work myself to verify a few items, let's consider this.

firstly, the drop we suffered would not have occurred (at least not to such extremes) if stop losses had not been taken out at the beginning of the day, many around $1.00 - this amounted to some 2million or so of the pre market volume (stop losses under $1.20) - hence, why I do not set stop losses.

That being said, we have dropped substantially and there are very large trades going through, also, the candle stick pattern is a 3-gap down bullish reversal pattern.

To top it off, well, see the indicators for yourself: (daily indicators)

RSI 14: 13 (lowest is normally 20-30 range)
RSI 4: 3(lowest is normally 15-20 range)

BOLLINGER BANDS
Currently under the daily bollinger band 35/3.5, normally, whenever this occurs, on any ticker (any) it eventually goes back up to the lower 20/2.00 bollinger band (which should be at about $2.20-$2.25 tomorrow - and within a few days should be at around $2.00)

That being said, usually(though not always) an eruption over the lower bollinger band and a meeting of a common resistance point will occur. A good resistance to consider might be $2.30ish area. (i forget exactly where)

PARABOLIC SAR (standard): 3.05 (likely drop to about 2.93ish tomorrow)

WILLAMS %-R: -90% (over sold, though on 9/29/2014 it ended at -98%)

Volume was ~142million.

Both tickers (FNMA / FMCC) close exactly at -99 cents (though they move opposite ways to get to that exact number end of day)

This should end in a consolidation effectively, a consolidation that requires upwards movement. (at least a little day or so breather)


That being said, I must state that While I anticipated a drop to $3.10-$3.30 from the high of $4.80, prior to any move upwards, I did not anticipate a drop this extreme, even with a failed court case (since there are so many).

Some of the factors above seem a bit peculiar and staged, such as the matching end of day price, the extreme pre-market stop loss claiming, etc. and other factors revolving around the courts themselves.

This to me, seems nothing more than a staged dump. Someone wanted to get a ton of shares as cheap as possible, i.e. $1.00 area, and they successfully stole 2million+ shares for about the same price. ($1.00 or so average price per share, wow, incredible at this stage in the process)

So, overall I am quite bullish, however I will admit I am hurting quite a bit. I was able to day trade quite a bit today and make up some of my losses, however, I still had about 70% of my position held over night from 9/30/2014 to 10/1/2014, i.e. 30% cash available for the drop to trade and make purchases.

When i called my broker earlier today about a few questions on my account (that I won't go into, but I tend to do this about 3-5 times a week anyway) the associate on the line was shocked to see what occurred to the ticker as he had been following it himself, but not invested in FNMA. At his startled demeanor and apologies for the loss, I merely re-iterated a statement I've made to the board in the past.

"Well, they won't get my damn shares. Not a single one."

Anyway, be well, good luck, I likely will not speak again for a bit. Also, I want to apologize to riskychick - you know why I am.

May everyone's trades be swift, and their decisions a matter of perfection.

Good night, below you will see a short 'detail' of a post I performed back in april of this year, after another large move down.

-Zargis

A bead of sweat trickled down his face, leaving a white streak along his flushed skin.
“IDIOT!” He swore, wondering why everything was so obvious now though not long ago, he was torn with inaction. Indeed, he recalled a time when everything from one day to the next was black or white, easy to decipher and now; someone went and threw a rock in the gears.
Something was wrong with him, though he couldn’t admit such to his wife. He was awash with agony that was invisible to the untrained eye, though, to those who knew what to look for – the pain was plain to see.
Still, though it felt as if he’d ran a fifty mile marathon, the finish line was so much further. By the end of the day, every day, his body was wasted, his mind screaming for an end that would never come.
Surely, how much longer would this path take? It was a question he’d asked himself many times in the past, and each time he’d agreed with himself that indeed – it could not be much longer. Not so long that the green pastures were out of human sight.
“No… I will not falter. Not now, not after I’ve already gained so much.” he stated it aloud though no one could hear. It was more of a self-reassurance than a true belief at this point, though, he questioned the truth of everything he once believed.
Glancing once more at the screen, he realized that the facts were plain to see, the probabilities easily visualized and the others who took interest quite obvious in their own actions.
The difference between him and them however, was that while they could ‘move worlds’ he was but a single man – incapable of anything worthy of notice.
Taking a deep breath, he wiped away the wetness from his forehead and forced his body to move.
As he left the room, he uttered one last thought before switching off the light.
“Not today. They won’t take my damn shares today… nor will they ever.”


*Cough*
Does anyone else feel this way?