Fannie Gets Spanked

I think that Fannie Mae (FNM) may be one of the most interesting situations in the market. And by "interesting" I do not mean it looks like a "buy". I mean that tracking it over the last year has been like watching a slow motion car crash. I have been making comments in the blog for sometime and last week I pulled a bunch of them together into one place - Fannie Mae: Watching a Breakdown Unfold...

The stock is tagging a new annual low today I was just discussing it in the blog as it has been locked in an oversold condition for over a month. Here is the chart I showed...

Similar to what I discussed yesterday on the Amex Gold Bugs (HUI) , the bolded blue bars denote days when the RSI is above 70 (overbought) while the bolded red bars shows days when the RSI is below 30 (oversold). This is one of the relatively few situations where a stock gets into an oversold (OS) condition and stays there

My comment in the blog was that if the bulls have the ability to step in for a short-term bounce, now seems like the "logical" time. I would take a failure as a warning sign that underlying buying pressure has been depleted.