Fannie Mae (FNMA) Crashes 62% After Relative Strength Index Hits 98, Brings Back Memories of 2008
This FNMA volatility reminds me of 2008 when the world was coming to an end. Today FNMA hit a high of $1.47 with an RSI of 98 before crashing 62.5% to $0.55. Not sure what the $0.09 print was about. Look at FNMA's intraday move in the second chart. Some hedge fund managers believe that Fannie Mae's preferred shares are a better bet here (TheStreet.com, 2). FNMA is spiking because it is returning to profitability and could possibly "repay as much as $61.5 billion in rescue funds to the U.S. Treasury" (WSJ).