Replies to post #3647 on Freddie Mac-No Politics (FMCC)

[crable]

Because according to the indicators it is Oversold, not overbought.

[crable]

Here is a chart with 3 common indicators to determine overbought and oversold posititions:

RSI (Relative Strength Indicator) - http://www.investopedia.com/terms/r/rsi.asp

Williams %R - http://www.investopedia.com/terms/w/williamsr.asp

Ultimate Oscillator- http://www.investopedia.com/terms/u/ultimateoscillator.asp

There are others, but these are just a few that people use to determine overbought/oversold positions.

Notice that all three I show are at or near oversold levels.

[Entangled Proton]

There's other reasons also
imo

1. There's a strong belief that the pps is going highr.

2. Some of the larger traders have had there funds clipped and must ride it out.
a. block sizes have decreased in size.
b. If you traded three stocks fri 3 times, you may have exceeded the margin limits and are waiting for transfer acknowledgements and settlements.

ie. If you start with 30k and trade it 3 times in one day that's 90k. If you do that 3 days in a row thats 270k or 240k credit. Most margin accts are designed to accomidate 200 % credit or 90k of trades from 30k cash.