FNM Watch

Fannie Mae (FNM) is trading in the middle of the range set by yesterday's large decline, with the low so far touching $1.21, the precise Fibonacci 50% retracement line.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
FNM $1.22

Technical indicators -- the macd and stochastic -- continue to improve.

In terms of trend: To qualify as a higher high, and maintain the uptrend of the past six days, today's price will need to . . .

• . . . top $1.36, nearly 10% away from the current price.
• . . . stay above $1.17, nearly 7% away.

The second requirement seems easy; the first, not so much.

If FNM fails on either of those requirements, then the uptrend has ended.

My big caveat with FNM is that I don't understand the action of the past two days: A huge rise followed by an equally huge fall.

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Such excess normally results from news or rumors. No surprises touching directly on FNM were published.

This signal will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.

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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