IncomeSharks

S&P 500 and VIX

Seeing that post Triple Witching action continue to play out which at the time doesn't seem likely. Still hard to get a full read on the market which loves changing on a dime but there's still something to note with the OBV that we never made a higher OBV even though price went up so much higher. I haven't seen that before with the markets and the lockout rally and massive retail surge was quite impressive in hindsight. With less liquidity and volume they were able to push the markets up substantially higher with narratives like AI, memory, etc.

VIX starting to flit with going back above 20

After a pretty slow few weeks as far as volatility and VIX we are starting to see a little more action pushing it up. It can chop back and forth for a while but you can kind of feel the enthusiasm of the market getting drained a bit. A big reason is seeing that high beta stocks (RUT) is down now after it had a nice day a few days back which gets everyone excited again.

SPXU hedge up, not

Update on the OBV lesson

A good example of how the bearish OBV divergence played out. Obviously you don't know how long the line is going to be but you could see how it chugged along higher while the OBV started grinding lower. When OBV is a leading indicator (volume based) you start to notice that people were taking profits and volume started coming down as price pushed up higher.

Divergences are usually better for taking profits than shorting because of the timing

The hardest part about shorts is how exact the timing has to be but when you notice a divergence you can start having a sense of where to take some profits. As you can see sometimes the length of them are longer but eventually price likes to catch up with OBV. Now we also get to see what happens when OBV is starting to show a breakdown while price hasn't quite down that yet. It can snap back into the range but it's a good chart to watch for lessons rather than try to actually take.