Fannie (FNM) and Freddie (FRE) have had one helluva great rally over the last few trading sessions despite a very choppy market, including one day that saw the dow lose well over 200 points.

Fannie Mae is up about 70% since last week Thursday when it traded as low as 3.82 and now sits at 5.94 per share. Freddie Mac traded as low as 2.61 that same Thursday and is now up about 65% to 4.37. Unfortunately I called the move up in Fannie and Freddie too early, posting about it on August 18. For those who got in on a long position on the 21st you’ve made a great deal of money, but the losses suffered on the 18-20th were very substantial and only now recovering.

One has to wonder how much further these stocks can continue to climb. S&P has cut Freddie’s preferred stock rating to BBB- abut is also seeing stronger demand for its recent one-month bill offering.

[tags]fannie mae, freddie mac, fre, fnm, shaun carter, stock market, investing, s&p, trading, mortgage lender[/tags]