FNMA and FMCC preferreds. In search of the elusive 10 bagger.

[twacowfca]

The price action for the last few days and today was suggestive of a bubble, so we were able to sell most of our positions into the dramatically increased liquidity.  If there should be a pull back, we may jump back in with all the apparently favorable developments behind the scenes suggesting light at the end of the tunnel.  However, we may instead wait to see what the administration's plan is and how well it's received by congress before making a long term commitment.

[Myth465]

The price action for the last few days and today was suggestive of a bubble, so we were able to sell most of our positions into the dramatically increased liquidity.  If there should be a pull back, we may jump back in with all the apparently favorable developments behind the scenes suggesting light at the end of the tunnel.  However, we may instead wait to see what the administration's plan is and how well it's received by congress before making a long term commitment.

You are proving to be quite the value trader  . I am taking notes lol.

[junto.investing]

The price action for the last few days and today was suggestive of a bubble, so we were able to sell most of our positions into the dramatically increased liquidity.  If there should be a pull back, we may jump back in with all the apparently favorable developments behind the scenes suggesting light at the end of the tunnel.  However, we may instead wait to see what the administration's plan is and how well it's received by congress before making a long term commitment.

When's the admin's plan again? Feb 13th?

[twacowfca]

The price action for the last few days and today was suggestive of a bubble, so we were able to sell most of our positions into the dramatically increased liquidity.  If there should be a pullback, we may jump back in with all the apparently favorable developments behind the scenes suggesting light at the end of the tunnel.  However, we may instead wait to see what the administration's plan is and how well it's received by Congress before making a long term commitment.

When's the admin's plan again? Feb 13th?

No official date, but probably after the budget is presented the week after next.

[junto.investing]

The price action for the last few days and today was suggestive of a bubble, so we were able to sell most of our positions into the dramatically increased liquidity.  If there should be a pullback, we may jump back in with all the apparently favorable developments behind the scenes suggesting light at the end of the tunnel.  However, we may instead wait to see what the administration's plan is and how well it's received by Congress before making a long term commitment.

When's the admin's plan again? Feb 13th?

No official date, but probably after the budget is presented the week after next.

Thoughts on this latest piece of news?

http://www.bloomberg.com/news/2011-02-04/fannie-freddie-plan-to-cut-market-share-to-below-50-cnbc-says.html?cmpid=yhoo

[ericd1]

The market didn't like the news...The pfds started dropping at 2 PM...Down $0.43 for the day

[twacowfca]

The price action for the last few days and today was suggestive of a bubble, so we were able to sell most of our positions into the dramatically increased liquidity.  If there should be a pull back, we may jump back in with all the apparently favorable developments behind the scenes suggesting light at the end of the tunnel.  However, we may instead wait to see what the administration's plan is and how well it's received by congress before making a long term commitment.

You are proving to be quite the value trader  . I am taking notes lol.

If anyone wants to know more about when a certain kind of price action suggests a surge in price is about to pull back or a bubble is about to pop,  may I suggest Didier Sornette's book, Why Stock Markets Crash.  Don't let the advanced math scare you. Just read around any parts you don't understand. 

His ideas work especially well in markets or stocks where there is a lot of short selling and short covering without potential regulatory action interfering with price adjustments.    

[alertmeipp]

let us know when you see the market about to... 

[twacowfca]

let us know when you see the market about to...  

Are you wanting a prediction about the future or the past?  The former is "especially difficult", as the man said.  

[twacowfca]

There is a story about an oil driller who died and found himself standing at the pearly gates of heaven in front of Saint Peter.

     "May I go in," asked the oil driller?

     "Look at all those other drillers ahead of you, just inside the gates," answered Saint Peter.  "You'll have to wait till we process them.  Some big deepwater event."

     The oil driller fidgited for a minute, and then yelled: "Oil discovered in Hell!"  When they heard this, all the other drillers jumped up and ran back through the pearly gates straight down to Hell.

     Saint Peter turned to the oil driller standing before him and said, "Well, there's no line ahead of you now.   I guess you can go in."

     But, the oil driller turned away and started to follow the other oil drillers down to Hell.  "Why are you going that way," asked Saint Peter?

     "I can't take a chance," replied the oil driller.  "There might be some truth in that rumor!"

This is an appropriate prelude to letting the board know that we took about one third of our Fannie and Freddie profits and bought their preferred stock once again on the recent pullback.