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Tuesday, April 6, 2010

FNM Watch

Fannie Mae (FNM) has set a higher high, of $1.07, for the second straight day. There might also be a higher low -- we shall see
trendadxpsarppsmacdmacd
trend
stosto
trend
FNM $1.06

With the emerging descending triangle, or pennant, or whatever, the price can rise to $1.12 before hitting the upper trendline.

The macd continues to improve to the bull side, and the pps has kicked in this morning with a phase shift to bull mode. For the first time in seven days both the pps and psar and in agreement.

FNM earnings will be announced on May 6 after the market close, so in the ensuing month I would expect increased volatility in this already volatile, politically charged stock.





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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: 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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