Latest News

Annaly Capital Management’s Rare 3-Standard Deviation Selloff

S&P 500




Dow 30








Russell 2000




Crude Oil
















10-Yr Bond
















CMC Crypto 200




FTSE 100




Nikkei 225




The effects of rising interest rates continue to hit markets and none more so than in the mortgage sector. The amount of selling lately, for example, in Annaly Capital Management Inc. (NYSE: NLY) is remarkable for its extraordinary downward pressure on price levels.

Here’s the daily price chart, to show you how extreme this is:

[Chart 1]

The upper and lower bands represent two standard deviations from the mean price — the mean is the dotted line in between them. Technical analyst John Bollinger popularized this form of examination when he appeared regularly on CNBC in the 1990s and later. Since then, this type of analysis has become known as Bollinger Bands.

Most of the time, prices tend to remain inside these two-standard deviation levels. Once in a while, when they poke through either the upper line or the lower line, it gets the attention of price chart analysts who proclaim the overbought or oversold status.

That the Annaly Capital Management Inc. chart for Sept. 26 shows a three-standard deviation from the mean reading — a rare event suggesting something special is taking place in the company’s mortgage real estate investment trust (REIT) business.

Indeed, that’s the case as the 30-year Treasury bond yield is hitting higher levels than seen for about 20 years — and as 30-year fixed rate mortgage yields follow the lead to higher and higher levels.

This is the effect of the higher Federal Reserve funds rate just established by the economists on the Federal Open Markets Committee. These much higher rates for mortgages will put a halt to the growth seen over recent years in real estate, construction and associated industries.

Don’t miss: This Little Known REIT Has Produced Double-Digit Annual Returns For The Past Five Years

For a longer-term perspective, here is Annaly Capital Management Inc.’s weekly price chart:

[chart 2]

The drop below the lower Bollinger Band has happened only twice in the past two years — earlier this year in June and in March and April 2020 during the pandemic price plunge. Note that significant rallies eventually followed the below-the-band signature, but there are no guarantees of this.

It’s possible that prices may continue to fall for weeks or months despite what these charts seem to suggest.

Here’s the monthly price chart for Annaly Capital Management Inc.:

[chart 3]

Look at how unusual it is for the price to close below that lower Bollinger Band when examined in this time frame. That such a rarity is unfolding this month for Annaly Capital — and with similar charts for other mortgage REITs — is a testament to the power of the Fed’s interest rate decisions.

New Farmland Investment Offering For 390-Acre Forage Crop Farm In Idaho

Royce At Trumbull Multifamily Investment Offering Now Open For Pledging On RealtyMogul

Not investment advice. For educational purposes only.

Charts: Courtesy of StockCharts

See more from Benzinga

5 High-Dividend REITs Now Trading Below Book Value

Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga does not provide investment advice. All rights reserved.


EV Industry Developments Have Us Charged Up About This Position

Today the Department of Transportation approved EV infrastructure development plans for all 50 states. All states now have access to all FY22 and FY23 National Electric Vehicle Infrastructure (NEVI) Formula Program funding that totals more than $1.5 billion. As a reminder, that program will help build EV chargers covering approximately 75,000 miles of highway across the country and has earmarked $5 billion to spend over the coming five years as part of the Biden Infrastructure Law.


U.S. approves 50 states’ EV charging plans

WASHINGTON (Reuters) -The U.S. Transportation Department (USDOT) said on Tuesday it has approved the electric vehicle charging station plans for all 50 states, Washington and Puerto Rico covering about 75,000 miles (120,700 kms) of highways. The November 2021 $1 trillion infrastructure bill provides $5 billion to help states install EV chargers along interstate highways over five years. States now have access to more than $1.5 billion to help build EV chargers, USDOT said.

Dynasty Secures New Credit Line Amid IPO Delay

The $50 million credit line will support technology and advisor financing services, according to the firm which serves independent financial advisors.

American City Business Journals

Republic First turmoil continues as Tierney resigns from board, bank considers Norcross offer for 45% stake

The last remaining ally of former Chairman and CEO Vernon Hill has resigned from the board of Republic First Bancorp, while the new leadership of the embattled Philadelphia-based bank fends off criticism from two activist investors. Brian Tierney, who owns and operates Philadelphia’s Brian Communications, submitted his resignation in a one-sentence letter dated Sept. 19 to his fellow board members that was released Friday in a regulatory filing. Hill and ally Barry Spevak resigned from the board this past summer after losing a power struggle to a board faction led by current Chairman and CEO Harry Madonna and his allies Andrew Cohen, Lisa Jacobs and Harris Wildstein.

The Wall Street Journal

Hurricane Ian Is Latest Blow to Florida’s Struggling Home Insurers

The storm will test the state’s unusual home-insurance market, where dozens of small to midsize carriers and a state-run insurer of last resort play a leading role in paying claims.

CNW Group

METRO INC. – Dividend Notice

METRO INC. declares a quarterly dividend of $0.275 per common share, which is the same amount as the quarterly dividend declared for the previous quarter. This dividend is payable on November 8, 2022 to shareholders of record as at October 21, 2022.


GM delays return-to-work plans to 2023

General Motors Co on Tuesday said it will not mandate workers return to offices before 2023 after it had told them on Friday that they would be expected to work three days on-campus each week later this year. GM on Friday had cited the dramatic improvement in the COVID landscape for the change “to drive the best collaboration, enterprise mindset and impact.” Many companies are still grappling with how much to require white-collar employees to return to offices.

Insider Monkey

10 Best Dividend Stocks to Buy According to Morgan Stanley’s Quant Screen

In this article, we will discuss the 10 dividend paying stocks to buy according to Morgan Stanley’s quant screen. If you want to explore similar stocks, you can also take a look at 5 Best Dividend Stocks to Buy According to Morgan Stanley’s Quant Screen. Morgan Stanley’s Base Case: S&P Falling to $3,400 by Year […]

Motley Fool

3 Stocks I’m Buying During the NASDAQ Bear Market

It’s been a rough year for the NASDAQ Composite Index (NASDAQINDEX: ^IXIC), plunging nearly 30% this year. Here are three stocks I’m looking at buying as their long-term opportunities are still intact while their share prices are well off their highs: Alphabet (NASDAQ: GOOG), MercadoLibre (NASDAQ: MELI), and CrowdStrike (NASDAQ: CRWD). Alphabet (formerly known as Google) is a huge conglomerate of businesses, but its primary focus is advertising.

Yahoo Finance Video

Stocks: The biggest analyst calls on FedEx, McDonald’s, Lucid

Yahoo Finance Live anchors discuss Morgan Stanley halving its price target on FedEx, Citi lowering its forecast on McDonald’s, and Cantor Fitzgerald initiating coverage of Lucid.

Insider Monkey

10 Best Materials Stocks to Buy After Fed’s Latest Rate Hike

In this article, we will be taking a look at the 10 materials stocks to buy after the Fed’s new policy. To skip our detailed analysis of these stocks, and recent policy measures and their consequences, you can go directly to see the 5 Materials Stocks to Buy After Fed’s Latest Rate Hike. On September […]

Motley Fool

Why Shares of Lucid, Blink Charging, and ChargePoint Are Powering Higher Today

As of 11:17 a.m. ET, shares of EV-maker Lucid Group (NASDAQ: LCID) were up 4.9%, while Blink Charging (NASDAQ: BLNK) and ChargePoint (NYSE: CHPT) had climbed 4.7% and 6.8%, respectively. Seeing considerable upside, Cantor Fitzgerald has initiated coverage on the EV stock, assigning it an overweight rating and a $23 price target. On Sept. 15, Citigroup resumed its coverage on Lucid with a buy rating and an even more auspicious price target: $28.

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News