Annaly Capital Management''s Rare 3-Standard Deviation Selloff 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 … Full story available on Benzinga.com