EBAY and FNM

TraderD007 · Aug 20, 2003

Quote from AAAintheBeltway:

All these issues with FNM/FRE are very well known. The Treasury, Fed Reserve and Wall Street establishment will do whatever is necessary to protect these golden geese.

Saying they are highly leveraged does not put them in the LTCM category. I seriuosly doubt they are exposed to Russian junk bonds, etc. Their problem is a simple one, namely hedging against prepayment risk for their huge mortgage portfolio. Their size and the dynamics of hedging create problems, but they have the best financial engineers in the business plus the backing of the government.

BEST FINANCIAL ENGINEERS?? LOL

You have to be joking....this is the analogy between FNM traders and the Wall Street MBS (Vranos, Clinton, Greenwich)....grade school kiddies getting punked by the high school jocks.

FNM only has the government on their side.

Basically, FNM is toooo big tooo fail if you know what I mean.

BTW....FNM is a HEDGE FUND that specializes in MBS.

ElCubano · Aug 20, 2003

Quote from TraderD007:

BEST FINANCIAL ENGINEERS?? LOL

"Best Financial Engineers" is the same as "the Government"........even the big fall sooner or later.....

newtoet · Aug 20, 2003

Quote from kgharris:

Here is some insight on FNM from a service I subscribe to - could be a nice short, but will probably take awhile to see it's full potential.

http://stockcharts.homestead.com/FNM2003.html

Where would you put your stop with this short? Above the trendline?

ElCubano · Sep 9, 2003

bobcathy1 · Sep 9, 2003

I would not short EBAY. I have a friend who does it on a regular basis and always gets his butt handed to him. He has lost more money thinking it is overvalued. He has done it since it was in the 50's and now it is up over 100.

dis · Sep 9, 2003

The time to short FNM is now. Stop above 70.

ElCubano · Sep 10, 2003

Quote from dis:

The time to short FNM is now. Stop above 70.

More downside to come Dis....when the regulators step in they will find a new meaning to "COOKING THE BOOKS".....peace

ElCubano · Sep 18, 2003

Quote from ElCubano:

More downside to come Dis....when the regulators step in they will find a new meaning to "COOKING THE BOOKS".....peace

I guess not........... closed Short@69.98....

ctrader · Sep 18, 2003

waiting for ~$75, with stop above longterm downtrend at $78

EBAY and FNM

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