XLV - OBV divergence says it's time to go short
Updated
Mr. Market is happy today! So what am I doing? Searching for short opportunities, of course. XLV fits the bill.
As you can see, there's a rather significant On Balance Volume divergence with price. This is often a leading indicator signifying a potential price reversal. I'm going to wait just a bit for it to get below the red support line but then jump right in. I still think we have a leg left to go down before the ultimate bottom.
As you can see, there's a rather significant On Balance Volume divergence with price. This is often a leading indicator signifying a potential price reversal. I'm going to wait just a bit for it to get below the red support line but then jump right in. I still think we have a leg left to go down before the ultimate bottom.
Trade closed manually
I just pulled all my shorts because I think a pretty decent bounce is going to happen. It started yesterday in the small growth stocks that had gotten annihilated to that point and today it spilled over to the rest of the market. I expect this to continue until the Fed minutes are released from the last meeting.
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