FNM Watch

Fannie Mae (FNM) continues to use the 50% Fibonacci retracement level ($1.21) as a reversal point. The binary flags remain in bull phase, but the macd and stochastic are deteriorating.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
FNM $1.23

(By binary flags, I mean the parabolic sar and Person's Prprietary Signal, which give unambiguous bull or bear signals.)

I see no obvious short-term price pattern. A fellow trader pointed out last week that the price action since December can be seen as a cup and handle, with a price target of $1.70.

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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

Exchange-Traded Fund Symbols:
EEM - emerging markets
EUR/USD - euro/dollar currency pair
GLD - gold
JNK - high-yield corporate bonds
SPY - blue-chip stocks
TLT - Treasury long-term bonds
USD/JPY - dollar/yen currency pair
USO - crude oil
VIX - fear index

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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