Did anyone else catch the massive dump in financials (XLF) on Friday the 16th?
I was looking at the sector flows and thought my data feed was broken. The price was basically flat all day e.g around +0.03%. But the on balance volume was tanking... I'm talking a -40% divergence against the moving average. Massive distribution under the hood while they held the index up.
Then boom, Saturday morning we get the news: "Trump threatens 25% tariffs on Europe over Greenland dispute"
By Tuesday, the market gaps down and XLF gets crushed.
The timing is too clean. Someone was aggressively derisking Financials on friday afternoon before the tariff headlines even hit the wires on Saturday. Textbook "insider" positioning.
Just a heads up to watch the flows not just the candles. That divergence saved me from holding calls over the weekend.