BSC was slightly different: (1) The company takeover was done by another publicly traded company. (2) The price of the takeover was initially about 7% (increased to 33%) of the close of "Bear Stearns Friday". Using 33%, we are talking about a "takeover" of FRE at about $1 and FNM at about $1.40
if we see a strong opening (open low and buying pressure coming in) i might go long for a short intraday rally... if freddy opens below 3$ i probably place a stop buy order at 3.01, and will add at 3.11 with tight stops... (first entry 2.89, after 2nd 2.99), if freddy at 3.20 stop to entry level 3.06. and then trail it up...
how do you guy call it in english, if you want to say, someone puked as much as there was... ? i think that's whats on with freddy and fannie right now... something to eat and drink (short recovery) is due...
Fundamentals aside, you know that scalpers are having a field day with these stocks....tons of volumes and huge intraday moves on a percentage basis.
just entered 1st part... the significance of the 3$ level and the 4$ straight in fannie is inviting for a rally at the open...
alright, that trade went really wrong... stopped out... the opening dynamics was the other way round... too bad i didn't enter short when stopped out
I wonder if a long FNM/short FRE trade has any merit, on the presumption that FNM is the stronger of the two.