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Saturday, October 5, 2013

FNMA 3rd epic run coming? $10?

FNMA currently 1.49

Wanted to do a blog post on this 2 weeks ago but got lazy.   Currently the stock has held $1 and when i thought it was over i was wrong and since it has held $1 i said at 1.25 the bottom on FNMA is in and that i believe we could be in store for a possible 3rd pump in 1 year.  Expect the unexpected  nobody thinks that FNMA is going to run again lets face it.
First run was .30 to 1.47 basically 400% 5 days.
2nd run happened after about month and half of consolidation. lets say avg entry on that .82  to 5.20  550% about .

now we crashed from 5.20s to 1 so the beauty of it is we didnt break $1  there is a buyer there that held it up for a reason as i see it.

currently we had our first 40million+ vol day after 2 months of doing nothing.  now i believe that we could potentially see a 3rd run in this stock before 2014 but it may take some time.

Lets do some math  lets say the avg consolidation area for FNMA was 1.20-1.30  the last run had a 150% increase lets give this also 150% .  so it runs 700% from the 1.25ish consolidation that brings this to $10-11 a share if we do get a 3rd run.

remember these are all "IFS"  

what i want to see is back to back at least 60-70 million increasing volume to signal a possible 3rd leg up.  they key breaking point is $2 and we need to get over that and possibly consolidate over there for a little while but if thats possible and the volume comes in we might have a monster mover going into 2014 imo.

if the 3rd run does start we will need to see at least 120-150 mill vol days above $2 just to cover the bag holders from the past run

i am now watching this stock every day looking for certain volume/price signals to tell me what it wants to do  ill post some charts below
Daily chart below

Resistances  1.80 and $2  and 2.40




All my thoughts are jumbled up there.  but im long 1k and will hold as long as previous weeks low is not broken which is 1.26 currently  i will be daytrading this whenever volume and range opens up.  i will add more to my long position once i get those huge volume days 60mill+ at the min



7 comments:

  1. I'd say the third run of a year would be spot on and the news of JPM having to pay will help us profit nicely http://www.investopedia.com/terms/t/tripletop.asp

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  2. Hello Peter, You need to update this blog more often. You're very good at what you do, even though you hardly observe your own great predictions.

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    1. thanks richard. i do play my plays but i dont hold long enough for the full move that i planned for need to work on that. and i think ill start blogging more just lazy i post usually on twitter

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    2. Hello Peter, I was just wondering, Do you have subscribers/students. I'd like to subscribe to your tips and alerts. Please, let me know if you do. Thanks

      Richard

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    3. maybe in the future i might if and when i do ill prob write a blog or tweet it

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  3. I like your observations Peter, you have a good feel for these picks, if you set up email alerts would want to join up. Thanks

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