Comments on: New All-Time Lows For Freddie Mac and Fannie Mae http://blog.afraidtotrade.com/new-all-time-lows-for-freddie-mac-and-fannie-mae/ Helping traders overcome fears and emotions in trading Thu, 09 Feb 2012 14:53:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Corey Rosenbloom http://blog.afraidtotrade.com/new-all-time-lows-for-freddie-mac-and-fannie-mae/comment-page-1/#comment-131062 Corey Rosenbloom Thu, 21 Aug 2008 01:15:41 +0000 http://blog.afraidtotrade.com/?p=2801#comment-131062 Cruz, You're right - thank you for the clarification. I have updated the post to reflect this change. There was indeed a massive rally across many financial stocks (and a corresponding plunge in the 2x ultra-short financials ETF!) so I'd love to know as well how much of it was due to rebalancing rather than new buying. I hope there will be a study of this nature out soon. Thank you for the comment. Cruz,

You’re right – thank you for the clarification. I have updated the post to reflect this change.

There was indeed a massive rally across many financial stocks (and a corresponding plunge in the 2x ultra-short financials ETF!) so I’d love to know as well how much of it was due to rebalancing rather than new buying. I hope there will be a study of this nature out soon.

Thank you for the comment.

]]> By: Cruz Tijerina http://blog.afraidtotrade.com/new-all-time-lows-for-freddie-mac-and-fannie-mae/comment-page-1/#comment-130999 Cruz Tijerina Wed, 20 Aug 2008 20:49:53 +0000 http://blog.afraidtotrade.com/?p=2801#comment-130999 Thanks for your informative and as usual concise and interesting post. I believe however that there is a slight mistake since the SEC did not re-enact the requirement for short selling to take place on upticks (this requirement was removed on July 3rd, 2007). What they did do was to selectively enforce (since it was already illegal) the rule on naked short selling, whereby a short seller would have to actually borrow the shares they are intending to short sell. The rule applied to shares of 19 financial institutions (including FNM and FRE) being sold short but did not apply to institutions shorting stock while acting as bona fide market makers. This rule came to an end last week so we are back to normal. It would be interesting to analyze whether this rule being lifted had anything to do with the horrendous market action on FNM and FRE so far this week. Thanks for your informative and as usual concise and interesting post. I believe however that there is a slight mistake since the SEC did not re-enact the requirement for short selling to take place on upticks (this requirement was removed on July 3rd, 2007). What they did do was to selectively enforce (since it was already illegal) the rule on naked short selling, whereby a short seller would have to actually borrow the shares they are intending to short sell. The rule applied to shares of 19 financial institutions (including FNM and FRE) being sold short but did not apply to institutions shorting stock while acting as bona fide market makers. This rule came to an end last week so we are back to normal. It would be interesting to analyze whether this rule being lifted had anything to do with the horrendous market action on FNM and FRE so far this week.

]]> By: Corey Rosenbloom http://blog.afraidtotrade.com/new-all-time-lows-for-freddie-mac-and-fannie-mae/comment-page-1/#comment-130984 Corey Rosenbloom Wed, 20 Aug 2008 18:25:48 +0000 http://blog.afraidtotrade.com/?p=2801#comment-130984 Thanks Steven for the clarification. I've added this distinction into the post. I debated on which to use, but figured it would be clearer to readers via the labeling of StockCharts (on the name) to use FNA preferred and then to use FRE for the longer time lookback but you're right, I should have made the distinction in the post for clarity. Thanks Steven for the clarification. I’ve added this distinction into the post. I debated on which to use, but figured it would be clearer to readers via the labeling of StockCharts (on the name) to use FNA preferred and then to use FRE for the longer time lookback but you’re right, I should have made the distinction in the post for clarity.

]]> By: steven http://blog.afraidtotrade.com/new-all-time-lows-for-freddie-mac-and-fannie-mae/comment-page-1/#comment-130981 steven Wed, 20 Aug 2008 18:09:04 +0000 http://blog.afraidtotrade.com/?p=2801#comment-130981 That is the Fannie preferred issue you are using, not the common (FNM); apologies if you know... That is the Fannie preferred issue you are using, not the common (FNM); apologies if you know…

]]> By: Ray The Money Man http://blog.afraidtotrade.com/new-all-time-lows-for-freddie-mac-and-fannie-mae/comment-page-1/#comment-130976 Ray The Money Man Wed, 20 Aug 2008 17:19:13 +0000 http://blog.afraidtotrade.com/?p=2801#comment-130976 Great advice on the low volume. That makes me very cautious, it is no time to short here. Great advice on the low volume. That makes me very cautious, it is no time to short here.

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