Wednesday, April 28, 2010

FNM Watch

Fannie Mae (FNM) is again testing the lower trendline, breaking below a bit before retreating into the symmetrical triangle that it has been tracing since April 12.
trendadxpsarppsmacdmacd
trend
stosto
trend
FNM $1.23

Although the parabolic sar remains in bull phase, Person's Proprietary Signal turned bearish yesterday. The macd has retreated below the zero line, into bear territory, and the stochastic has moved from oversold into neutrality, a bearish sign.

Volume was down sharply yesterday: 30.1 million shares, vs 47.4 million on Monday. Since overall market volume was up by about 25% yesterday, the lack of trading in FNM is all the more striking.

So, it's all very much a mixed bag.

Earnings after market on May 6.


Options as a Strategic Investment

Options as a Strategic Investment is a one-stop source of practical information, clearly presented, about the the trader's most important tool for managing risk. This book occupies an important place on my desk.



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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