Fannie Mae-No Politics (FNMA)

[chessmaster315]

The short answer is that investors have determined that FMCC is undervalued in reference to FNMA.

There are some reasons for this. Someone pointed out that FMCC shares were higher than FNMA prior to 2008, at least some of the time, while its now the other way around.

At a minimum, the "FNMA/FMCC gap" had widened, and the past two days where FMCC rose while FNMA fell slightly seems to reverse that trend.

In efficient markets, disparities such as this are more quickly resolved.

However, rememeber this is a "penny" stock, and this keeps many big players away..such as mutual funds whose charter may well prohibit pennies in favor of big board stocks. So, this gap appeared to artificially widen, probably driven by retail. This profit opportunity, however, did not go unnoticed and, eventually, buyers moved into FMCC (relative to fannie..some may have even sold fannie to buy freddie)
For more, see the Elliot Wave theory.