3 June 2026, Freewriters Community Daily Writing Prompt Day 3123: not a bad guess
“OK … is it supposed to be doing that, Grandma?”
Mrs. Ludlow was checking some of the family investments, and had stopped to look at one of them that had held up well through the pandemic drama … but she and eleven-year-old granddaughter Eleanor had noticed the same thing at the same time.
“No, it isn't – that shouldn't even be possible at the same time – that's a $5,000 spread and widening between buyers and sellers,” Mrs. Ludlow said. “It's called 'bearish divergence' – the price is staying up, but an indicator is trending down strongly.”
“Could the platform be glitching?” Eleanor said.
“That's not a bad guess,” Mrs. Ludlow said, “but what's really going on is that the market is glitching: sellers want a higher and higher price but they are clearly running out of buyers who want to pay it, and that's obvious from the spread … and from the Relative Strength Index here as well – that's what RSI means.”
“So how is the price staying up?” Eleanor said.
“Everybody hasn't looked at the spread and the RSI – or the MACD – Moving Average Convergence and Divergence,” Mrs. Ludlow said. “Yeah, that's a really bad setup – I'm going to close this position to another asset that isn't acting like this, and then trade that out for dollars.”
Eleanor watched as her grandmother looked through her options and made her moves – “See, in this asset, I could have waited and made more money, but the key is, sell into strength. Buyers wanted to buy so I obliged them and our money is on our way to the bank now. You never can tell, in a related asset group, what the crashing of a big bearish divergence like that is going to do overall – there's a reason that happened, and while we don't know what it is, we don't need to know. We just need to secure our stuff first, and we can watch it play out afterward if we want.”
Mrs. Ludlow went back to the chart for the diverging asset, and Eleanor watched as the spread widened to $7,500 … $8,500 … $10,000.”
“How far can it go?” she said.
“It's not about how far,” Mrs. Ludlow said. “It's who gives in first: buyers or sellers. If the sellers give up, the spread will narrow because they will pay the price the buyers want. But if the buyers need to get out of their positions and give up, the price will jump down quickly to where the sellers want it.”
“And we don't care because we found a way to get the price we wanted and get out,” Eleanor said.
“Yep,” Mrs. Ludlow said.
“Well,” Eleanor said as she got up, “who needs the drama?”
“Not us,” Mrs. Ludlow said, and shut the computer down with a smile.