As eye-popping as Fannie's gains are, what's even more interesting is the massive volume that blogger Karl Denninger first pointed out. As of this writing, trading in Fannie Mae, Citigroup
Let me put that another way: One out of every three shares traded on the NYSE was Fannie, Freddie, Citi, or B of A.
So what gives? Have these institutions that are subsisting on government cheese suddenly turned the corner? To me, it looks like frenzy -- like coyotes descending on a carcass to try and get any remaining morsels. I've hung onto my shares of B of A, but I'm being careful to watch this spasmodic trading from a safe distance.
But what do you think? Is there good reason to join the rabid buying of these stocks, or will the crazed investors end up getting bitten for their enthusiastic buying? Scroll down to the comments section and share your thoughts.
Fool contributor Matt Koppenheffer owns shares of Bank of America and McDonald's, but does not own shares of any of the other companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool. The Motley Fool's on Twitter, too. The Fool's disclosure policy knows it's just a jump to the left, then a step to the right.