I think it will go up. The announcement is basically that they will bail out Fannie/Freddie if such a need arises, but at the same time they deny that there are any major problems with two companies.
Of course I’m biased (I’m long FNM, entered at $10) but we’ll see. If it drops to 5, I’ll double down.
P.S. Asian markets are sideways, European markets are up. DAX and FTSE are generally well correlated with Dow, they are up 1.1% – 1.3% right now.
