Replies to post #542527 on Fannie Mae-No Politics (FNMA)

[Nelson478]

The Real Reason Friday Recovered

It was not because Gasparino's tweet.

It was not because @CarlosVignote aka "Here I am" aka "Black" post on Yahoo forum.

It was because the intraday shorters and those who held shorts since Monday (multiday) needed to close prior to going into the weekend.

Gasparino and anyone with basic trading knowledge knows what happens on Fridays within 30 minutes of market close. 100s of equities have short squeezes on Fridays when the short positions cover with buys to exit going into the weekend. Many traders will also buy the dip and ride the short squeeze up and then sell in the last 2 minutes of trading.

This is why you will often see at 3:30pm to 3:45pm Eastern a rapid dip followed by a rapid recovery up to 3:55pm followed by a smaller selloff dip before market close at 4:00pm.

Gasparino knew there would be shorts covering and so he timed that tweet to make it appear as if he was the cause. Why? Because so many of these business reporters get compensated or additional airtime when they can post news that makes the market move.

If you trade, often Monday and Friday are where the money is made because you'll get all kinds of volatility and momentum.

That's it. Next week will be interesting.

[Letgoofmyfannie]

Yo Carlos; not even, it was the Power of Song that caused the shares to rise. You can google it, but I put it here to make it easy for those here who do not know how or may be unable to google, enjoy, it'll set your toe a-tappin':


Let the GSEs Rock

Now out of New Orleans comes a new judicial chance
Eighteen federal judges, some riding a-scance,
En Banc to take a new Lamberth stance
As they consult deep in their law books
Nooch, Otting and Phillips run to GSE Treasury nooks

There’s gotta be a real fix acceptable to all
We tell each other, ‘cause this system has the balls
See it workin’ these past ten years, spite-a bank bullshit n’ anti-GSE fears
And there's a hundred billion for Uncle Sam
If we don't foul up the executive plan!

So now at last between the Courts and the Admin
There finally could come a GSE win    
N’ the best part is Fan and Fred can finally serve the public again!
And there's a hundred billion for Uncle Sam
If we don't foul up the executive plan!