Are you disadvantaged?

Reuters is quoting Rep. Barney Frank “I think all shareholders will be disadvantaged” 

Ho! You THINK! Thanks for the update House Representative Frank.

 

Sorry folks, your Fannie or Freddie shares are going to worth a lot less Monday. You know what they say – What didn’t kill you make you stronger. I don’t like trading this kind of news because individual trader like me, without the support of a big firm, end up on the wrong side of the trade more often than not. With that said, I think it is worth the risk to buy a few shares Monday morning during amateur hours (like 9:30-10:30AM EST) when amateurs dump their shares and overshot to the down side. I will be a buyer if I see low $3’s for FNM and mid $2’s for FRE. I’ll put down a few hundred bucks for a bet Monday if the opportunity present itself. If I win, I’ll buy myself a super wide angle lense for my upcoming travel.

Still liking my EUR/USD short position. I’ll be at my desk when Asian markets open tomorrow (Sunday afternoon New York time).

 

P.S.

Did you know Fannie Mae’s formal name is Federal National Mortgage Association and Freddy Mac’s is Federal Home Loan Mortgage Corp?

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