Freddie Mac (FMCC): I agree with an earlier poster that it i...

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ThePennyDoctor

Re: trunkmonk post# 38793

Tuesday, 10/21/2014 8:17:04 AM

Tuesday, October 21, 2014 8:17:04 AM

I agree with an earlier poster that it is an opportunity. It actually happens quite often, but then the gap always closes. We have actually had some instances where FMCC briefly traded higher than FNMA, in which case I buy FNMA. I think these gaps arise when a shareholder of one of the two is dumping a lot of shares and holds one of them back. I will load up on FMCC in the morning if the gap is still there. By the end of the day, it will be back to .05; I expect the gap to close be 10:30 and consider this a great opportunity for easy money. Also note that FNMA took off EOD yesterday - FMCC missed out on this EOD spike and will make it up this morning IMO.

Whoever loves money never has money enough; whoever loves wealth is never satisfied with his income. I have seen all the things that are done under the sun; all of them are meaningless, a chasing after the wind. Only trade for the sake of trading.