Fannie Mae-No Politics (FNMA)

[Bodach]

Simple MACD analysis:

Trying to explain this as if I was talking to a 5 year old. Just makes it easier to grasp. Not trying to insult anyone at all.

Without turning this into a 5000 word essay, the short term (as in tomorrow morning) looks like a dip. The mid term (a week or so) looks to be in good shape, but it's indicative of tempered confusion or indecision. Given that we have a scheduled earnings on the 19th and the 10-K hinted that the deferred tax assets may be included, the mid term, I expect, will break from indecision, and pull both moving averages upward after a bottom cross at a higher price.

That red line, when it uptrends from under the blue, is a bullish signal. When red is above blue, in the short term, it implies a dip when turning back toward blue from above. If I had to guess, I would say that FNMA gaps up tomorrow at around .94, then crashes hard quickly to 0.78-0.80. This puts the red line under the blue moving average.

Then we just wait until red starts looking bullish against blue. I think, at that point, it will break the dollar barrier, and various institutions can take their positions.

But, again, I believe there will be a dip tomorrow before lunch. I've got some extra capital ready ;)



Sorry if this offended anyone. I find it's better to explain the dips, and show their temporary nature, than just shout "to da moon" all day. *though that is tempting* =]

In the end: I think we're looking at a stock for the history books.