I forgot to mention Freddie Mac (FRE) , the kissing cousin of Fannie Mae in my post yesterday . They move together pretty much.

This morning, Fannie is pissed at cousin Freddie for ‘blowing up ‘ first. They have both blown up months ago but the news is hitting today. I think the secret sauce of this blowup is the potential dividend paring or complete give-up. We were on our way to a nice opening before this bomb.

It does not change my gameplan from last night . It may hurry a panic bottom at this point. Any great trader is already short these two stocks and the awful news is reason to TAKE some profits. These stocks have a history of being protected so the moves down are outlier events and should be respected.

Barry was blogging on the news surrounding the recent Fannie meltdown last Friday . He says it could be another TYCO. I think it already is and the battle for the carcass has begun. The short’s have their fangs deep into this one and they won’t concede easily this time.

I will be picking much easier battles as usual.

Disclosure – Watching with no positions