2 replies to this topic

[hedgehawk]

I shorted this stock today based on the below story that regulators rejected their request. I expect a slow bleed back to recent lows of mid 50's here shortly. The stock closed at 64.12 right below its 50 sma at 64.52. The stock rocketed last week from 56 to 69 on the rumor............a retracement is in order. WASHINGTON (MarketWatch) -- Shares of mortgage-finance giants Fannie Mae and Freddie Mac fell Monday following a decision on Friday by the companies' regulator to reject Fannie's request to buy more home loans to prop up the sagging mortgage market. The companies' regulator said it will keep Fannie's request in mind but that the caps on its mortgage portfolio will remain for now. The Washington, D.C.-based mortgage buyer had asked the Office of Federal Housing Enterprise Oversight to lift those caps and let it fund more multifamily loans as well as single-family mortgages. Chart of FNM Shares of Fannie Mae (FNM : Fannie Mae News , chart , profile , more Last: 64.12-2.34-3.52% 4:00pm 08/13/2007 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: FNM64.12, -2.34, -3.5% ) finished Monday's trading 3.5% lower, at $64.12, while shares of Freddie Mac (FRE : Freddie Mac News , chart , profile , more Last: 61.52-0.43-0.69% 4:00pm 08/13/2007 Delayed quote data Add to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: FRE61.52, -0.43, -0.7% ) dropped about 1%, to $61.52. Late Friday, Ofheo director James Lockhart said both companies are still "significant supervisory concerns" following their respective accounting debacles and rejected Fannie's plea. See earlier story. Democrats including Senate Banking Committee Chairman Christopher Dodd and Sen. Charles Schumer of New York have urged Ofheo to let Fannie Mae pump more liquidity into the market, but so far the lawmakers have been rebuffed. In rejecting Fannie's request, Lockhart noted that Ofheo recognizes "the important role played by the Federal Reserve in providing liquidity to the market." On Monday, the Fed and other central banks once again injected cash into global financial systems in an effort to alleviate a worldwide credit crunch. See Market Snapshot. End of Story Robert Schroeder is a reporter for MarketWatch in Washington

[kaiser soze]

I like the FNM short idea. Its got the double top, with negative RSI divergence on the second top. W%R coming down from overbought as well. OBV supportive of short thesis. Good luck with the trade. KS

[mike123]

I shorted this stock today based on the below story that regulators rejected their request. I expect a slow bleed back to recent lows of mid 50's here shortly. The stock closed at 64.12 right below its 50 sma at 64.52. The stock rocketed last week from 56 to 69 on the rumor............a retracement is in order.






WASHINGTON (MarketWatch) -- Shares of mortgage-finance giants Fannie Mae and Freddie Mac fell Monday following a decision on Friday by the companies' regulator to reject Fannie's request to buy more home loans to prop up the sagging mortgage market.
The companies' regulator said it will keep Fannie's request in mind but that the caps on its mortgage portfolio will remain for now. The Washington, D.C.-based mortgage buyer had asked the Office of Federal Housing Enterprise Oversight to lift those caps and let it fund more multifamily loans as well as single-family mortgages.
Chart of FNM
Shares of Fannie Mae (FNM :
Fannie Mae
News , chart , profile , more
Last: 64.12-2.34-3.52%
4:00pm 08/13/2007
Delayed quote data
Add to portfolio
Analyst
Create alert
Insider
Discuss
Financials
Sponsored by:
FNM64.12, -2.34, -3.5% ) finished Monday's trading 3.5% lower, at $64.12, while shares of Freddie Mac (FRE :
Freddie Mac
News , chart , profile , more
Last: 61.52-0.43-0.69%
4:00pm 08/13/2007
Delayed quote data
Add to portfolio
Analyst
Create alert
Insider
Discuss
Financials
Sponsored by:
FRE61.52, -0.43, -0.7% ) dropped about 1%, to $61.52.
Late Friday, Ofheo director James Lockhart said both companies are still "significant supervisory concerns" following their respective accounting debacles and rejected Fannie's plea. See earlier story.
Democrats including Senate Banking Committee Chairman Christopher Dodd and Sen. Charles Schumer of New York have urged Ofheo to let Fannie Mae pump more liquidity into the market, but so far the lawmakers have been rebuffed.
In rejecting Fannie's request, Lockhart noted that Ofheo recognizes "the important role played by the Federal Reserve in providing liquidity to the market."
On Monday, the Fed and other central banks once again injected cash into global financial systems in an effort to alleviate a worldwide credit crunch. See Market Snapshot. End of Story
Robert Schroeder is a reporter for MarketWatch in Washington

Fannie and Freddie are beneficiaries of this subprime crisis. This demonstrates that wallstreet investment banks can't handle the mortage business. GSE's market share will increase a lot. They can't hold more portfolio, but they can provide more quarantee.