Now That They’re Dead, 5 Things You Coulda Done With Fannie Mae (FNM) & Freddie Mac (FRE)
Posted by Timothy Sykes on Sat 6th of Sep, 2008 03:46:02 PM
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Now that it looks like these monstrosities are being put to death by the government (see article HERE), it’s fun to write in hindsight…here were your options:
1. Been ballsy and shorted both after the perfect technical breakdowns they exhibited back when they were both trading in the teens, which I wrote about exactly 2 months ago–see original post HERE
2. Been a little less ballsy and waited a few more days for when they were confirmed breakdowns, meaning they had tried to rebound and failed, which I wrote about HERE just 4 days after the original post when they were down 20%+ish.
3. Traded like a professional trader–whatever the f$%ck that means considering 90% of traders lose $–and scalped in and out during their bigtime volatile/liquid days–scalping or swing trading for a few cents/$/share here and there, whenever there were new intraday/multi-day highs/lows being made. Very tough, definitely not for beginners.
4. Mocked the joke of an industry that is financial lending–f$%cken irresponsible finance freaks with too much $/power…every few years/decades, people think they’ve found new ways of making boatloads of cash, it usually ends in ruin. If you haven’t already, shame on you, read THIS damn book already!
5. Taken the rules outline in my PennyStocking Instructional DVD and ignored this whole mess cuz trying to figure it out makes your head hurt and chances are you’re not smart/lucky/experienced enough to be on the right side of this trade when it all comes crashing down (this weekend). Why people look down on buying and shorting pump and dumps I’ll never know–they’re so much easier to figure out!
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TIM Trades
View All| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| Nov 20 | STXS | $3.21 | $3.48 | $813 |
| Nov 18 | PERY | $4.68 | $5.00 | $640 |
| Nov 11 | IIJI | $2.79 | $2.95 | $442 |
| Nov 6 | CVI | $4.42 | $4.70 | $530 |
| Nov 5 | MECA | $3.68 | $3.95 | $490 |
| Nov 4 | CVI | $5.18 | $4.94 | $472 |
| Nov 4 | CVI | $4.83 | $5.01 | $333 |
| Nov 3 | NAK | $3.30 | $3.37 | $157 |
| Oct 31 | IDAE | $2.18 | $2.18 | $20 |
| Oct 30 | HSNI | $7.37 | $7.86 | $561 |
| Oct 29 | EVC | $1.97 | $2.70 | $1439 |
| Oct 28 | HSNI | $6.92 | $7.30 | $540 |
| Oct 28 | HSNI | $6.20 | $6.00 | $320 |
Total: $35,854 (189%)
COIN last minute rally on Friday looked like a typical Friday afternoon short squeeze, don’t think it will be sustainable and should crap on Monday. Your take Tim?
You think this will help bring th whole market down on Monday and therefore give a hand bringing down some due penny stock breakdowns?
my take on COIN will go out to TIMalert subscribers Sunday night:
http://www.timalerts.com
as for the market, who the hell knows, i just do pump at a time, everything else is less predictable
i went with option 5.
I went with option #6–I avoided FRE and FNM but did take an easy finance short. SSBX had $1.5 billion in construction loans in bubble states and only $200m in equity. I shorted them from $2/shr and they were just shut down by the FDIC. Booyah!
I own September 3 puts…what do you think FRE opens at monday?
I think the FRE/FNM move will be good for the markets. Finally some action has been taken to address an economic problem, rather than just letting this huge bedsore fester.
And all of us taxpayers will become involuntary investors :(
Lucky Canadians…..
>Lucky Canadians…..
Don’t worry, we pay our fair share of taxes. I mean more than fair.
And except for oil and gold, when the US goes down, so does the Canadian economy.
>I own September 3 puts…what do you think FRE opens at monday?
Options was the way to go, smart kid.
Saw BEEI as a forner 0 vol stock..said many times this is a sign of pump crap ..got the jump on ya shprt as BEEI was easy borrow.
Here’s the link:
http://darksidetrading.blogspot.com/
Jumped Ya!
“Keep pointing them out Tim. Who is the “promoter”?. Don’t forget to nail him to the wall also.”
George
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Huh?
You gotta love this!
Keep my mail box full of this pump crap!
I played the FNM/FRE play by buying just a few shares of WM on Fri after hrs with the hope of selling first thing monday am. gotta think it’s good for financials but I only bet a small amt.
Just got done reading Cramer’s mortgage bailout thoughts (top story on thestreet.com).
If he’s right we’ll be seeing a huge market rally next week.
Looking at your Covestor chart again, I saw it has an 82% increase from your last COIN trade.
That is more than just the ignoring-cash-position problem.
For that one trade, actual return on entire portfolio value was 3%. Ignoring the cash position problem, return should have been 12%. I’m sure the math is more complicated, but 82% is so far off.
yaktipper,
if you look at the 1 month chart it actually looks more realistic, something like 5-10%. There must be some compounding effect in that.
I think you are right. When you have 1 holding spaced with periods of no holdings, for some reason that compounding effect gets super exaggerated.
yup compounding is a beautiful thing!
http://market-ticker.denninger.net/
I wonder who will get super rich out of buying out FNM and FRE at a discount?
>http://market-ticker.denninger.net/
…Statement that “if you’re a bank and got just skulled in both eye sockets, please call us.” Oh, and everyone else? Too bad. Niiiiice.
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