Freddie Mac-No Politics (FMCC)

[fresco]

my sense is the run was manipulated by a large trader or traders who began accumulating shares back in early may until the float was thin enough to cause the stock price to go up very easily on low volume, who then set an automated sell plan starting when the stock hit $5. Its possible this same trader played the bounce yesterday, then took a short position. All of this began with this trader knowing full well that this hedge fund news, the wsj news, the housing data, the return to profitability acted like a perfect storm on the preferred and lighting up the screens of traders looking for volume movements.

this is a game where the big guys control the levers. And there's no way to really guess at what their sell targets are since its all a bit arbitrary.

Really, there should be some way to criminalize this manipulation except a lot a small time traders love playing along and do rather well.