Replies to post #549146 on Fannie Mae-No Politics (FNMA)

[TRCPA]

I think his main concern was about what the fed might do at this point. That's over now. Turned out to be a nothing burger.

Now, on to the plan.

[Nelson478]

Opinion on price action today and next week

At this point, based on the economic calendar next week and status of earning season, we do not see any major external catalysts which would result in FNMA/FMCC taking a market-based impact that would cause a movement intraday exceeding 10%.

There is too much support pressure from investors now waiting for release of the plan with new buyers coming in. The en banc also looks to have less negative teeth at this point.

The only thing that will materially spike the price will be the release of the GSE reform plan or leading-up comments next week from Mnuchin and Kudlow.

For today, from 11:00am to 2:30pm eastern expect a potential 5 to 8 cent dip off today's high due to low afternoon volume. That dip should be fully recovered by 3:45pm eastern with a new high of $2.98 to $3.01 (prediction).

Looking forward to Monday. Have a great weekend.