FNM: Sampling the Kool-Aid

Hard to believe, but Fannie Mae (FNM) has been tracing a series of high highs and higher lows since November 2008.

Any other stock, I'd say, "Wow!", and park some long-term money in shares to ride the trend.

But Fannie, of course, played a starring role in the collapse of capitalist finance in 2008. That's why the stock, which once traded above $70, tumbled to 30 cents a share.

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A headline writer on the Investor's Business Daily website at one point in the day said that the major stock indexes "Plunged". The decline today, so far, from high to low is 2.1 percent. They just don't make plunges like they used to.

The blue chip stocks (SPY) are trading slightly below the 50 percent Fibonacci retracement level, the current price is within the range set in trading on Wednesday, and are about where they were in late October.

In other words, 'tain't no thang. Also, there's no pps signal on SPY.