Fnm Charts Look Promising!
Q: Check out the 6 month charts for FNM! This is the FIRST time since 6 months ago that FNM traded sideways at the high level of .90.(yup, no more crazy up and down slopes, which illustrate heavy short sell covering/profit taking) This stock is ready to EXPLODE!!! This is a VERY stable footing towards $2-$3. The volume we have had shows much more confidence in the stock. If FNM has another psycho boost like the ones before, with this kind of volume that we have been seeing in the past week, FNM could easilly explode to $2-$3 range. Imagine if their earnings report profits!!! Or, if they lose a substantially lower amount of $ than the previous quarters, we are looking at a big BOOM IMO. Thoughs?
A: Your argument appears to state facts and then is substantially weakened when you ask what others think. You appear to be seeking confirmation of your hopes and dreams from other like minded individuals who also hope for the same thing....what would you expect them to say? If people agree with you you will probably feel better about your decision to be long FNM and for that you have come to the right place. There are many here who will agree with you and say $2- $3 is reasonable because they are also dreaming of the same thing. Let me tell you one thing my friend, there is by the book analysis, and then there is practical analysis. A simple man with no knowledge of the charts you are referring to, can simply look at the 6month trend and see that there is indeed a FOOTING of FNM that wasn't there in the last 6 months. It is a BULLISH trend based on the volume we have seen. Stocks have already bottomed my friend, as most bearish analysts are now reversing their bearish outlook. The earnings for FNM have NOTHING to do with your silly charts, if FNM makes $ this stock is hitting well above $2 for sure. Think about it, FNM has lost substantial money for ALL of the previous quarters. FNM has done record breaking refinancing deals in the months of Feb/ Mar which WILL be included in their Q1 earnings report. True, some would sell if they didn't feel the stock would go substantially higher. The thing is, if you lose your chance to buy in low on a "rocket" day, you miss out, so my ideal buyback entry point "can" be missed if I do that. Also, I have all my funds used up, which means I sold I had to risk thinking FNM won't go up in the next few days, and if it did, I would need to wait 3 days for the funds to settle before I can sell again. (to avoid breaking the "free ride" rule) But in that 3 days, profit takers would bring it back down in no time since they would potentially gain 100-300%, while I only gained my puny 9K. That is my thinking, so the 9K I could have made is now 5.4K, not a big deal to me, and worth the reward of FNM rocketing in the long term. (I have already made TONS off of BAC, I'm not desperate)