Positive Day For Fannie Mae
With Tuesday’s broad-based selloff, it might
seem like very little is working in terms of intermediate-term setups. Your
job as a trader is to keep your eyes roving for new opportunities that might
be lurking behind all the ominous headlines.
In the financials, mortgage loan buyer Fannie
Mae continues to move in its two-week uptrend begun after successfully
retesting its January lows. Not only has the stock recaptured its 50-day
moving average, but it also gained .40 to 80.90 on heavier-than-average
volume.
I will be watching to see if Fannie Mae can
continue to post gains on increased volume, and the spot I will be watching
most closely will be to see whether FNM can take out its Feb. 12 high of
83.20. The fact the Fed is likely to continue lowering rates helps the
Fannie Mae case as well.
See you Wednesday,
Eddie