Thursday, February 17, 2005

Falling From Grace

Here are two stocks that have broken down that could have larger implications for the market in general.

Click to Enlarge Posted by Hello

Above you will find the chart of Fannie Mae (NYSE: FNM). It has finally broken out to the downside. I've been waiting for that to happen for quite a while (Reminds me of Krispy Kreme). There are a lot of secrets going on in and around this company. I don't think we'll get the full story until investors have lost enough money for a political upheaval. If you're not out now, get out! You have been warned.

Click to Enlarge Posted by Hello

This chart is of Phelps Dodge (NYSE: PD), which has also broken out to the downside. This has definite implications in the commodities world. When investors/traders want a quick look to see what copper is doing, they just pull up the quote/chart of PD. This technical breakdown could be one hint to a not so bullish commodity outlook this year.

Just some random thoughts and charts...I hope you enjoyed them.

Best Regards,

The Soothsayer of Omaha


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