Fannie Mae-No Politics (FNMA)

[obiterdictum]

1. There is uncertainty in the media, meaning, conflicting reports create a confused view on the current and future status of the GSEs. Poorly informed shareholders are confused, uncertain and fearful. Price drops from previous days in memory. Bashers are out. Bears are being drawn in from everywhere. Bearish market atmosphere and action.

2. There are buyers of shares.
a. Retail shorts buying to cover
b. MMs buying to cover short positions
b. Longs buying for increased accumulation of shares at lower prices
c. Longs buying to average down
d. Day traders buying at the dips when they can but making errors because of automated trading algos and compensating by buying at lower prices
d. New retail and new other are buying in at low prices.

3. There are sellers of shares
a. MMs are opening short positions and selling shares short using automated trading
b. Short day traders are opening short positions and selling shares short
c. Shareholders with weak hands are selling out
d. Stop losses are taken out

The result is gradual, identical, automated decline in share price in the FNMA and FMCC stocks with temporary bottoms and small recoveries.

Currently moving to a double bottom in a single trading day.

Given the unusual sustained volume for these stocks since February 19, 2014, if there is stock price manipulation, the price decline is most likely due to automated bear raiding and wash trading.