FRE was up 128% today and FNM was up 51.52% today. These stocks are on fire. They are still soaring after-hours.

I didn’t have a lot of money in my Zecco account handy today, but I managed to buy 2000 shares of FNM at $0.91 per share.
As of this writing the FNM shares arer trading at $1.21 per share.

So as of now, I have already made a profit of $601.80.

I know this is a very small amount for serious investors and not worth mentioning, but still not bad profit for a day’s trading.

Fig: My FNM position at Zecco

Watch out for these stocks tomorrow. I would recommend them as a “buy” if you can get them during their “dip” (lowest price tomorrow).

Let me know if you made any profit out of Fannie Mae or Freddie Mac.

The stock trend of Fannie Mae (FNM) and Freddie Mac (FRE) has been utterly predictable. The stocks rise up (together) to about $0.95-$0.98, once every month or so and then die down.
Luckily, I have been able to buy them when they are down and sell when they are at their peaks. I sold mine today at an average of $0.90. But, I can kind of guarantee that it will go down to 80 cents or maybe even 70 cents and then go back up and down and up and so on………
Don’t believe me? Look at their charts. It is like a freaking wave. I urge my readers to be careful with these stocks because they seem predictable in a long run, but very risky if you are a day trader.

FRE stock Chart

This is probably the reason for the sudden increase in the price of the stocks today:

The federal regulator who has overseen Fannie Mae and Freddie Mac since the government seized control of the two mortgage finance companies last year plans to leave the government by the end of this month.

In an interview with The Washington Post on Wednesday, James B. Lockhart III, the director of the Federal Housing Finance Agency, said he will return to New York and work in finance.

Lockhart has spent about eight years with various federal agencies in Washington. He has led the FHFA and a predecessor agency for three years.

“I actually didn’t expect to stay as long as I have stayed,” he told the Post. “Given what happened a year ago, it meant I had to help work our way through this. Now we’re at the point where we’re seeing some stabilization.”

D.C.-based Fannie Mae and McLean-based Freddie Mac were put under federal conservatorship in September and received billions of dollars in federal aid as mounting problems with bad loans threatened their solvency.

In the Post interview, Lockhart said the Obama administration is reviewing its options for the future of the two companies, including spitting up both of them, establishing a government-backed entity that would absorb their loan losses and setting up another organization that would provide housing finance.

Lockhart’s replacement has not been named yet.

Source

I will probably buy them back if the price goes down to 0.70’s.