Fannie Mae-No Politics (FNMA)

[big-yank]

I'm not so sure about that "no news expected until inauguration" prediction for Fannie Mae. The incoming class of both Congress and Senate elects gets sworn in momentarily. There could be legislative news being floated, very early in the new session that can definitely move markets and move FnF immediately.

Then there is the possibility of movement on nominating and confirming judicial nominees, creating a LOT of upward mobility opportunities for justices seeking an elevated position. Lots of reason for several justices to pick up the pace on some visible rulings that could attract attention and favor with the new administration. Could be very favorable to Fannie cases based on the early read of Trump's intentions.

This is a news driven stock. I would NOT want to go into the new year with a short position. More possibilities for good than bad news prior to January 20th. After that, it frankly all looks good.