Fannie Mae-No Politics (FNMA)

[Double Black Diamond]

For those inclined to chart analysis, looking at FNMAS and FNMAT, as representative of all the other preferred issues, the move from the second half of 2019 to these past couple of weeks is a textbook example of a measured move. Most of the year 2020 was spent in building up a big bearish flag, exactly mid-point in the measured move.

For those looking for a future opportunity, we now wait for some back and forth trading to take place. A bottom and a reversal pattern may then develop. If JPS are going to be a part of any future deal or restructuring, the charts may give a strong hint of it ahead of time. A downtrend of this magnitude will take a little time to settle out, and it may take several months or more. With patience, an opportunity may present itself.