Friday, July 11, 2008

Freddie Lehman hit in the Fannie, Dow-ch!

Wow, the market just KEEPS getting killed. Credit crisis is alive and well! Freddie and Fannie are hitting new all time lows. Lehman was down 20% today hitting an intraday low of $13.29 (Shares Of Lehman Brothers Sink Amid Financial Sector Concerns).

Also there are Bloomberg headlines that the gov will NOT bail out Fannie and Freddie! “Our primary focus is supporting Fannie Mae and Freddie Mac in their current form,” Mr. Paulson said in a statement. “We are maintaining a dialogue with regulators and with the companies.” Fannie and Freddie Shares Fall by as Much as 50 Percent. Look at these 5 day Fannie Mae and Freddie Mac charts from Yahoo Finance, it looks like there has been some big volume blocks, is this overdone? Well there's still a lot of put volume at the Fannie Mae July 7.50 puts (Volume 14,313 w/3,317 OI) and 5.00 puts (Volume 18,440 w/3,632 OI). Is volatility at its peak here?? UHHHH.. WE'LL SEE!

As of now the Dow is at 11,029!!! It pierced through 11,000 and hit 10,980. I think we're going back to the 10Ks folks! The Dow is at lows not seen since 2006! I'd say we're in a bear market, but from the look at the long term chart on the dow we could see support at the July 2006 lows of around 10,700. There are some big bargains, well hopefully soon bargains, of some BIG AMERICAN COMPANIES right now folks!

Dow 2 year chart