What do you guys think ? Will it break $ 50.00 and keep going down or bounce back to $55.00 ? I say it will touch $ 50.00 again and then go up close to $55.00
I am long and strong, short fre though. Not too big, just an arb that I think could be worth 4 bucks or so.
As an investor, I wouldn't buy it at any price. Wall Street has consistently underestimated the risk in this stock and underreacted to negative news. The only thing that can save FNM is politics and I don't bet on politics. Martin
If I am a straight buyer/holder, I will not even hold it. There is too much political risk in FNM/FRM.
This is a perfect war between TA and funnymentals..... My TA says it goes back to $55.00 first. Funnymentals to $ 0.00 I think TA will win.
...Technical analysis is useless for a company like FNM, with so much headline risk. The combined affects of the flattening yeild curve, the slowing of the housing market, the ongoing investigations into illegal activities, and the uncertainty about earnings is a perfect storm...i wouldnt touch FNm with a ten foot pole. The only thing saving FNM is political clout, and that could dry up at any time.