2 OTC stocks spiked out of the gate on Monday…
Hyped by 1 BIG trader.
I’m talking about a billionaire almost every trader knows about.
And the hype worked.
It wasn’t exactly an old-school billionaire play.
That’s when a billionaire announces an investment in a company and the stock goes parabolic.
In the case of these two OTCs, the billionaire has been invested since at least 2013.
But when you see his X post…
You’ll see why I took one of my easiest trades in a months…
Table of Contents
“If the Rich Guys Do It, It Must Be Worth Something”
On Monday (March 30), Fannie Mae (OTCQB: FNMA) and Freddie Mac (OTCQB: FMCC) both spiked right out of the gate.
And it had all the looks of a classic “billionaire play.”
I highly recommend you read “The Complete Penny Stock Course” by my friend Jamil Ben Alluch (there’s a section dedicated to billionaire plays).
The most important thing to know today is…
The 3-Step Billionaire Play Sequence
- A billionaire invests in a company (usually there’s a press release).
- It creates a sheep-like “buy, buy, buy” mentality where uninformed investors buy just to follow the billionaire.
- Over time, billionaire plays often sell off, following the 7-Step Framework into the long kiss goodnight.
So, was this a classic billionaire play?
Not exactly.
In this case, Bill Ackman of Pershing Square Capital Management tweeted…
“Some of the highest quality businesses in the world are trading at extremely cheap prices. Ignore the MSM. One of the most one-sided wars in history that will end well for the U.S. and the world. And we have the potential for a large peace dividend.
“One of the best times in a long time to buy quality.”
In a follow up tweet, Ackman wrote…
“Fannie and Freddie are stupidly cheap. Asymmetry at its best. They could be a 10x and it could happen soon.”
The main difference between Bill Ackman hyping FNMA and an old-school billionaire play is that he’s been invested in FNMA and FMCC for years.
Pershing Capital has owned nearly 10% of both companies since 2013.
So, Ackman is invested for the long-term.
But…
The Tweet DID Hype the Stocks
Right out of the gate on March 30, both FNMA and FMCC gapped and ran…
FMCC is usually a sympathy play to FNMA. Notice how similar the charts look…
Crazy, right?
Now check out the 2-year charts for FNMA and FMCC. Pay attention to the green candle on the far right of both charts.
As you can see, it was a big one-day move for both stocks (And the only catalyst was the tweet)…
I took a small trade (and I forgot how much easier OTC plays are).
Oh man I forgot how much easier OTC plays are, congrats to all $FNMA longs, I sold too early in the 6.60s as usual, but I'm just happy to take a solid piece of the move…it's just so crazy how beautiful this uptrend is….we need more of these!!! Retweet if you love it too! pic.twitter.com/g5do5ddNe8
— Timothy Sykes (@timothysykes) March 30, 2026
It was a nice and easy single to start the week. I miss OTC morning spikers because the action is so clean.
We definitely need more of these!
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Key Takeaways
The FNMA and FMCC moves weren’t old-school billionaire plays. But the hype and price action was very much the same (and THAT is key).
Top Tips to Trade Billionaire Plays
- You don’t need to hang out on X all day to get news like this. We have a team dedicated to uncovering Breaking News.
- Understand that hype can spike a stock, but it’s still just a trade. Trade the pattern and price action.
- Don’t chase. Remember, historically these things come back down.
- Always follow rule #1 and cut losses quickly.
For real-time commentary and full trade breakdowns…
Apply for my Trading Challenge
All my millionaire students started there, so apply today.
Cheers,
Tim Sykes
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