What I have noticed is all of the small accounts(weak hands, smart money?), selling. It is interesting that they have chosen the most historically consistent time in AGNC's runs to Ex, to sell. Think about it. They were selling around Nov 14-15 also when we were down at 28+ also.
They will be back buying at 33+ before the EX date also. It is pretty humorous that mob psychology will never change. I wish I could capitalize on their buy high, sell low mentality. Wait...I am...;-)
I have noticed that MBS prices are back down below where they were on Sept 30. So spreads are widening again as Mreits are getting hammered just before EX. Yeah mortgage rates are ever so slightly coming down according to the Freddie Mac but they usually lag a bit. 30 year T- Bill yields are holding though and ultimately that is the wall on MBS prices and spreads.
I was too chicken to look. Down over a buck on them and too skittish to double down. With the mob doing the bidding of the manipulators I do not trust that good reason will prevail and push this equity to fair value.
Small lots are not the necessarily the mark of a small account, some of the biggest traders get rid of their holdings in small lots.