Fannie Mae-No Politics (FNMA)

[Zargis]

Charlie,

Whatever you do be careful and have a plan.
Here are a couple things to consider - trading / charting information.

Movement History:
The last time we had this much volume, we moved up from open to close, a total of ~32 cents. (maxed out at 45-48) this was immediately after a red day that dipped to about 2.41 2-3 weeks ago.
Right now, we are up 16ish.
It is unlikely to dip below $3.00 again today, and even less likely to dip below $2.97 based on the current trading movements today.
In previous runs we've had similar volume to today on the opening break-away, followed by 90million+ in following days. I'm curious what tomorrow will bring.

VOLUME:
With current volume standing at 33.5million, and 3.10 hours left in the trading day, we will likely have an end of day run, rather than a sell off - once $3.00 is held most if not all day.
My expected volume end of day is 55 - 65 million based on history and today's trading volume thus far.

GAPPING:
We did not gap up today, we moved down then quickly moved up on decent volume. This generally indicates a decent green day, and, a possible gap up the following day.
If it gaps down tomorrow, I would expect us to end green again then as well.

Indicators:
We've had a minor golden cross occur on the hourly today, but also, RSI is not very high, Parabolic SAR flipped yesterday in the AM, and the Bollinger Bands are turning up. We could have a major breakout tomorrow just on these factors.

If, Fannie and Freddie announce anymore 'good' news or anything else happens come the weekend or tomorrow morning, we could expect a crazy movement in the next few days though I would cap it at $4.00 at an absolute maximum for the time being. (end of year)


Just some things to consider.

Regardless, be safe. Don't act on my words alone.

My possible sell point today is 3.13-3.14, depending on the volume / movement speed at that time. (if we get there - which seems possible)

I had considered selling at $3.10, and now wish I had, however - my days lately have made it difficult to watch the trading screen so; in those cases I'd rather not be stuck out.

-Z

P.S. I'm expected green tomorrow, and, possible a gap up. Then, a red Monday and Tuesday next week.

Monday may start with a gap up, but will collapse. Though, I could equally see a gap down then - assuming Friday does indeed turn green.