4 is the floor. Will fluctuate between 4 and 4.30. Drastic predictions either way makes no sense (i.e. $3). Until major information comes will not see 3 or 5, but won't go much lower. Not with the big boys holding. Only little guys selling stop losses right now which explains the low volume.
It is hard to predict with the uncertainty surrounding the protective order. It seems clear from the order that came down Thursday, as well as reading the transcript, that the judge is leaning the Plaintiffs way. However, without a definitive denial of the protective order, the uncertainty remains and thus the reason that we have drifted lower. I would like to think with the release of the transcripts and time over the weekend to better study the situation that at the very least FNMA will reverse direction and drift higher, perhaps back to the 4.20 range. However, if the judge rules against the protective order, which seems will happen eventually, than we could regain back to the 4.60-4.70 range or even higher if there is a little short squeeze.
Irregardless of what happens this week though, you have to stay long because once the news hits, FNMA will go higher fast. GLTA
I think ruling in favor of the protective order could also be considered a positive. If the judge rules in favor of the protective order, that is the same as ruling that the FHFA is the Government for the purposes of this trial, in which case the court has jurisdiction to proceed and the court is effectively ruling against the Government's request to dismiss.