FNM Watch

Fannie Mae, FNM, broke past the upper trendline and then retreated, preserving the a developing pennant pattern that may, if valid, end in a sharp upward push.

The Parabolic SAR moved into bull phase today as the macd continued to improve.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
FNM $1.10

FNM, as a ward of the federal (like Robin's relationship with Batman?), is always prone to news surprises. Perhaps even moreso, as the calendar nears the earnings announcment after market close on May 6.

Former officials of Fannie Mae testified today in Washington before the Financial Crisis Inquiry Commission. But that's the past.

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The important question for traders is how FNM will eventually be structured. The government has said they don't plan to liquidate Fannie, but there are options short of liquidation that could leave the stock entirely without value.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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