Government Sponsored Enterprise Fannie May.(FNMA:OB)

Fannie Mae was founded in 1938 during the Great depression and today it was a very depressed public listed company.The corporation's purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities,allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on thrifts.
Fannie Mae is a government-sponsored enterprises (GSEs) are a group of financial services corporations created by the United States Congress. Their function is to enhance the flow of credit to targeted sectors of the economy and to make those segments of the capital market more efficient and transparent. The desired effect of the GSEs is to enhance the availability and reduce the cost of credit to the targeted borrowing sectors: agriculture, home finance and education. The financing of affordable housing for low-income and moderate-income families are the main priority.
In 2000, because of a re-assessment of the housing market by Housing Urban Development, anti-predatory lending rules were put into place that disallowed risky, high-cost loans from being credited toward affordable housing goals. In 2004, these rules were dropped and high-risk loans were again counted toward affordable housing goals
Fannie Mae buys loans from approved mortgage sellers, either for cash or in exchange for a mortgage-backed security that comprises those loans and that, for a fee, carries Fannie Mae's guarantee of timely payment of interest and principal. The mortgage seller may hold that security or sell it. Fannie Mae may also securitize mortgages from its own loan portfolio and sell the resultant mortgage-backed security to investors in the secondary mortgage market, again with a guarantee that the stated principal and interest payments will be timely passed through to the investor.
The White House missed a deadline at the end of January for telling Congress what it wants to do with the two GSEs. That report will be released as early as Friday, people with knowledge of its contents said, but it will present a range of options without stating a preference.

Closing price:$0.72 Turnover:5,685,0776 shares.

February's candlestick is an inverted bullish hammer as todate.It looks like it is slightly burning away and any pullback entry point is best at January's half candlestick body.

Tracking the Dow on Wednesday.09/02/11.(7 market days to index futures expiry)
9:30am:--A wild swing opening with a hangman pattern.Ahead of Fed's chairman testimony before the House Budget Committee on the state of US economy.

10:30am:--Spinning bulls at session high.Asian markets fell broadly overnight as investors there got their first chance to react to the China interest-rate increase.

11:30am:--New morning high with bearish hammer.

12:30noon:--Bearish spin at morning low.Financials were also weak, with J.P. Morgan Chase falling 1.4% after one of the bank's executives apologized for overcharging 4,500 active-duty military members for mortgages and wrongly foreclosing on 18.

1:30pm:--Retracement near the bull pivot resistance line.

2:30pm:--Pullback to new intraday low.Federal Reserve Chairman Ben Bernanke told a congressional committee that the labor market remains sluggish and hecontinues to believe that inflation will remain subdued. WallStreet's reaction to Bernanke's comments was muted.

3:30pm:--Retracing to the MAV resistance line.

4:00pm:--Bullish engulfing breakout ending with a runnaway bull.A late-hour rally in Bank of America shares helped the Dow squeeze out its eighthstraight day of gains.

Another spinning bull in an uptrend market which is still intact except for the intermittent volatilty.7 days before index/options expiry,it is normal to have bad news injected so as to artificially create a rollover high volume contracts.

U.S. stocks ended mixed Wednesday as a late rally pushed the Dow into positive territory at the close after a day tempered by downbeat comments from Fed chief Ben Bernanke.

The economy is improving and so are the company's earnings and valuations.

The founders are Germans.(NYSE:GS)

Goldman Sachs was founded in 1869 by German immigrant Marcus Goldman. In 1882, Goldman's son-in-law Samuel Sachs joined the firm.In 1885, Goldman took his son Henry and his son-in-law Ludwig Dreyfuss into the business and the firm adopted its present name, Goldman Sachs & Co.The company made a name for itself pioneering the use of commercial paper for entrepreneurs and was invited to join the New York Stock Exchange (NYSE) in 1896.
In the early 20th century, Goldman was a player in establishing the initial public offering (IPO) market. It managed one of the largest IPOs to date, that of Sears, Roebuck and Company in 1906. It also became one of the first companies to heavily recruit those with MBA degrees from leading business schools, a practice that still continues today.
On December 4, 1928, it launched the Goldman Sachs Trading Corp. a closed-end fund with characteristics similar to that of a Ponzi scheme. The fund failed as a result of the Stock Market Crash of 1929, hurting the firm's reputation for several years afterward.Of this case and others like Blue Ridge Corporation and Shenandoah Corporation John Kenneth Galbraith wrote: The Autumn of 1929 was, perhaps, the first occasion when men succeeded on a large scale in swindling themselves.
In 1930, Sidney Weinberg assumed the role of senior partner and shifted Goldman's focus away from trading and towards investment banking. It was Weinberg's actions that helped to restore some of Goldman's tarnished reputation. On the back of Weinberg, Goldman was lead advisor on the Ford Motor Company's IPO in 1956, which at the time was a major coup on Wall Street. Under Weinberg's reign the firm also started an investment research division and a municipal bond department. It also was at this time that the firm became an early innovator in risk arbitrage.
n 1969, Levy took over as Senior Partner from Weinberg, and built Goldman's trading franchise once again. It is Levy who is credited with Goldman's famous philosophy of being "long-term greedy," which implied that as long as money is made over the long term, trading losses in the short term were not to be worried about. At the same time, partners reinvested almost all of their earnings in the firm, so the focus was always on the future.That same year, Weinberg retired from the firm.
Another financial crisis for the firm occurred in 1970, when the Penn Central Transportation Company went bankrupt with over $80 million in commercial paper outstanding, most of it issued by Goldman Sachs. The bankruptcy was large, and the resulting lawsuits threatened the partnership capital and life of the firm. It was this bankruptcy that resulted in credit ratings being created for every issuer of commercial paper today by several credit rating services.
During the 1970s, the firm also expanded in several ways. Under the direction of Senior Partner Stanley R. Miller, it opened its first international office in London in 1970, and created a private wealth division along with a fixed income division in 1972. It also pioneered the "white knight" strategy in 1974 during its attempts to defend Electric Storage Battery against a hostile takeover bid from International Nickel and Goldman's rival Morgan Stanley.This action would boost the firm's reputation as an investment advisor because it pledged to no longer participate in hostile takeovers.
John Weinberg (the son of Sidney Weinberg), and John C. Whitehead assumed roles of co-senior partners in 1976, once again emphasizing the co-leadership at the firm. One of their initiatives was the establishment of the 14 business principles that are still used to this day.
On November 16, 1981, the firm made a move by acquiring J. Aron & Company, a commodities trading firm which merged with the Fixed Income division to become known as Fixed Income, Currencies, and Commodities. J. Aron was a player in the coffee and gold markets, and the current CEO of Goldman, Lloyd Blankfein, joined the firm as a result of this merger. In 1985 it underwrote the public offering of the Real Estate Investment Trust that owned Rockefeller Center, then the largest REIT offering in history. In accordance with the beginning of the collapse of the Soviet Union, the firm also became involved in facilitating the global privatization movement by advising companies that were spinning off from their parent governments.
In 1986, the firm formed Goldman Sachs Asset Management, which manages the majority of its mutual funds and hedge funds today. In the same year, the firm also underwrote the IPO of Microsoft, advised General Electric on its acquisition of RCA and joined the London and Tokyo stock exchanges. 1986 also was the year when Goldman became the first United States bank to rank in the top 10 of mergers and acquisitions in the United Kingdom. During the 1980s the firm became the first bank to distribute its investment research electronically and created the first public offering of original issue deep-discount bond.
Robert Rubin and Stephen Friedman assumed the Co-Senior Partnership in 1990 and pledged to focus on globalization of the firm and strengthening the Merger & Acquisition and Trading business lines. During their reign, the firm introduced paperless trading to the New York Stock exchange and lead-managed the first-ever global debt offering by a U.S. corporation. It also launched the Goldman Sachs Commodity Index (GSCI) and opened a Beijing office in 1994. It was this same year that Jon Corzine assumed leadership of the firm following the departure of Rubin and Friedman. The firm joined David Rockefeller and partners in a 50-50 join ownership of Rockefeller Center during 1994, but later sold the shares to Tishman Speyer in 2000. In 1996, Goldman was lead underwriter of the Yahoo! IPO and in 1998 it was global coordinator of the NTT DoCoMo IPO. In 1999, Henry Paulson took over as Senior Partner.

The Dow Thursday is 16 days to index/options expiry.Pivot day pullback Friday.

Asian Index Futures Friday last offer.
9:30am:--Opening gap up bulls strike.Latest jobless claims count above consensus.

10:30am:--Another bull spike,no sign of pullback to fill opening gap.

11:30am:--Another new session high with slight pullback.Europe's bourses up.

12:30noon:--Morning high established,bearish hammer sign.

1:30pm:--Graveyard doji,bearish hammer pairing up.

2:30pm:--Hangman and the bears are controlling.Financials and consumers stocks are supporting the index.

3:30pm:--Pulling back to the bull pivot support.Bearish doji star checking the advance.

4:00pm:--Hangman at the close.Sign of pullback to follow.

It's a short covering day,filling up previous Tuesday bearish candlestick but failing to penetrate the upper shadow.A weak bull.

The positive tone came after Greece, Portugal, and Spain saw their bond yields contract. Such a development is suggestive of calmed concern about the fiscal health of those countries, at least for the time being. The news also drove down the dollar, which closed with a 0.4% loss against competing currencies.

Kuwaiti dispose citigroup stake

Kuwait is an Arabic word meaning "fortress built near water."
Kuwait came under the influence of the Ottoman Empire and after the World War I, it emerged as an independent sheikhdom under the protection of the British Empire and gained its independence in 1961. Kuwait's large oil fields were discovered in the late 1930s.

Kuwait is regarded as one of the most economically developed countries in the Arab League and is designated as a major non-NATO ally of the United States.
Kuwait is one of the world's leading oil producers.

The Kuwait Stock Exchange is like an airport lounge. There was a restaurant, a Starbucks and a lot of people just sitting in chairs exactly like the ones you would find at airports. There was also a huge Times Square like electronic screen on the wall and that people can now watch the news and the stocks all from that "lounge". It was huge and just totally packed with people. The third floor is where all the action takes place and this is where you can find people dancing or people fainting. Ambulances lined up outside the stock exchange building because when the stocks went down badly so did a lot of people.
Sources hinted that Citigroup is seeking to repay billions in federal bailout aid but so far haven't received permission from the government.
The main sticking point is how much capital the banks would need to raise to repay taxpayers the money they received at the height of the financial crisis.

Citigroup received $45 billion in bailout money and is now 34 percent owned by the government.

The government has told Citigroup that it would need to raise at least $20 billion in common equity to be able to quit the Troubled Asset Relief Program.
Gulf Arab nations like Kuwait sovereign wealth funds have been heavy investors in U.S. and European companies, using their oil wealth to buy large stakes in companies ranging from Citi to Germany's Volkswagen AG and Mercedes-Benz parent Daimler AG.

Kuwait took its stake in Citi last year after another Gulf fund, the Abu Dhabi Investment Authority, paid $7.5 billion for a 4.9 percent stake in the company.

Kuwait Investment Authority (KIA) transferred the preferred stocks it owned in Citigroup to normal stocks and sold all of them for $4.1bn,a profit of $1.1bn from the sale, or a 37 percent return on its initial investment.

The Dow Tuesday,08/12/09 is 8 market days to Quadraple Witching Day.(18/12)
Nikkei Futures expire:2 more days.

Awal Muharram(muslim holiday:18/12/09)

9:30am:--Slightly unshaven top down bears with furthe gap down to nearly 150.00 points.

10:30am:--Retracement to only bear pivot with further bearish hammer.

11:30am:--Pierce through bear pivot with bullish spin.

12:30noon:--Reached MAV resistance held back by hangman.

1:30pm:--Pullback to bear pivot,shooting star warning.

2:30pm:--Near morning low with another shooting star.

3:30pm:--After finding the day's low,a rebound to the bear pivot.

4:00pm:--A bullish inverted hammer at bear pivot.
The upper candlestick shadow is poised to be covered again after having found its double bottom.

Seven days before the Dow expiry,will be a bullish recovery day.

Volatility this month will be very high as most funds are unwinding their positions and more venomous news will be injected in their favour.

Afterall what is call "witching",a devil's market.

Citigroup shares soar.(NYSE:C)

Citigroup Inc (NYSE:C) shares rose as much as 6 percent to their highest in more than three months on growing confidence that the embattled bank would become more profitable as it unloaded troubled assets.
People are buying it now in expectation of the triple because they made the decision that all of the negatives that could happen don't mean anything.
Some investors are betting that Citi shares will triple in three years.
Citi received $45 billion of bailout money from the U.S. Treasury's Troubled Asset Relief Program, known as TARP, and the government now owns a 34 percent stake in the company.
But shares are rebounding after higher-than-expected second-quarter earnings and a high-level management shake-up.
Citi shares are still well below their 52-week high of $23.50 in October.

Tracking the Dow on Thursday,20/08/09(3 more weeks to Triple Witching)
Asiaan Index Futures Rollover contracts start 24/08/09.Expiry:31/08/09

9:30am:--A mild bearish hammer open.
Initial claims for the week ending August 15 totaled 576,000, which was more severe than the 550,000 claims that were widely expected.

10:30am:--A slight pullback from session high but rested on the bull pivot with inverted hammer.

Dow Jones reported that U.K. retail sales beat expectations and hit a 14-month high in July.

11:30am:--An early spike down to MAV support,a good sign being followed by ascending soldiers.

The Philadelphia Fed Index came in at 4.2, which is considerably better than the -0.2 that was expected and up sharply from the -7.5 that was registered in July.

12:30noon:--The indicies are holding strongly at the bull support pivot.

The US Dollar Index is choppy this morning, but us trading in positive territory, adding selling pressure in precious metals.

1:30pm:--Pullback holding near session high.

The major indices have extended their morning advance, giving stocks impressive gains.

2:30pm:--Another pullback to bull pivot with a dragonfly doji star.

The leading economic indicators made their fourth straight increase by advancing 0.7% in July.
3:30pm:--The day's high was established.

Continuing claims also fed fears that the labor market remains extremely weak by rising slightly to 6.24 million even as many lose their unemployment benefits.

4:00pm:--Last minute profit taking but held strongly with a bullish harami.

The Dow is now enroute to a breakout of August high (9,437.71) by just a mere 87.66 points.

More signs that the economy is creeping toward recovery encouraged investors to move further into stocks -- but at a cautious pace.
Financials were particularly in demand after a report quoting American International Group Inc.'s CEO as saying the company will repay its bailout loans from the government.

Citigroup buy signal.

Should we start buying Citigroup tonight?
My answer is absolutely Yes.
There are 5 reasons WHY!
JUNE + JULY = Morning Star.
JULY = Dragonfly Doji.
AUGUST = Bullish hammering of the end of downtrend.
Join the bandwagon Now or Never,an opportunity of a lifetime.

Tracking the Dow,Thursday 06/08/09. (10 market days to index expiry)
Nikkei Futures Expiry:5 market days.

Asian index futures expiry:15 market days.
9:30am:--Bullish gap-up with a shooting star.

550,000 initial jobless claims were filed for the week ending August 1.

Continuing claims came in at 6.31 million, which is above the 6.25 million continuing claims that were widely expected and up from the previous week.

10:30am:---Session low with a bullish short cover.

Currently, crude is 1.7% lower at $70.76 per barrel.

11:30am:--The usual retracement to the MAV was checked by the shooting star.

A stronger U.S. dollar is exacerbating weakness in the commodities space.

12:30noon:--A pullback below the MAV line and near to morning low.Bulls tried to retrace its position.

This session's advance by GE has taken the stock back within close range of its six-month high, which was reached in ealy May.

1:30pm:--A shortlive retracement at MAV held back by a shooting star.

The midday pullback comes amid comments from CNBC's Rick Santelli that job loss totals for recent months could be revised considerably higher. Such a revision would likely be revealed with tomorrow's nonfarm payrolls report. The consensus estimate calls for 328,000 job losses for July.

2:30pm:--Day's low has been confirmed by the many spinning dojis,morning star.

Financials showed continued leadership in the early going.

3:30pm:--Retracement failed the MAV resistance test.
Stocks are trying to lift up from session lows, but weakness remains widespread.
4:00pm:--A bullish spinning dragonfly doji and inverted hammer will try to break the resistance again.

Despite two days of negative pullback,the Dow index is setting the stage for further bull rally.

Thursday's lower shadow is holding at par with previous session for second time and the index hit a high today.A healthy correction.

Volume of transaction is increasing each day especially with financial stocks support.