FNM Thoughts

Well, at least Fannie Mae didn't shit the bed yesterday. As I mentioned in my previous post I am currently long 1,000 shares awaiting the bailout news and began getting a little nervous when news came out that the talks were stalling. I think that this stock will move once a proposal is agreed on, even if it hasn't been passed by Congress yet, but until then it's gonna be one volatile SOB (and will continue to be after the bill as well). I had a feeling that it would rattle around the $1.50 - $2.00 price channel on Friday and it ended up staying between $1.60 - $1.90 for most of the day. There are rumors that there may be an agreement by tomorrow which I think would make for a very bullish open for the market on Monday. The short-selling moratorium is set to expire on Thursday though (unless the SEC extends it) which will add another variable into the markets for the week. Ideally, though, FNM will have popped by then and I'll be in something else and with extra cash in my pockets.