I had to restrain my middle school level humor a bit here... professional traders don't laugh at DIX jokes.
TView gods, if you're listening, please integrate SqueezeMetrics data for charting (I'm having to use Paint over here guys): squeezemetrics.com/monitor/dix
Got a couple homies in my DMs who love the DIX just as much as I do so figured I'd post about it in case anyone else out there is curious about DIX.
With that outta the way... check out my DIX pic: ibb.co/W3NNMHS
Basically DIX is trending down and GEX is trending up, same as the lead up to the March crash.
Historically GEX spiking up through the price is strongly correlated with Price downturns.
What I'm looking for here is an upward GEX breakout, especially up through Price, and DIX downward breakout and sustained divergence.
That is almost certain to drive down Price in the near term.
Also note that the the last 3 GEX Price spikes didn't result in Price downturn even though the two directly before and most historical instances it does. This suggests we're building up for a larger downward Price movement. The only other time GEX and Price behaved like this was the March crash leadup.
This definitely could have saved me from making my short play too early because high DIX is strongly correlated with increasing price (think of DIX as Big Money basically).
So the market hasn't crashed thus far, despite lots of crash indications since early June, precisely because DIX was too high and had sustained divergence over GEX. Basically was almost certain not to crash and I wish I knew about this thing back then!
That's the basic idea here from all the time I've spent playing with DIX.
Let me know your thoughts, hope it's helpful B).
PS: Super TRIN climbing support channel, lets see where it goes!
Pretty sure Squeeze has said that the GEX forward looks about 60 days, so the initial spikes in December and January signaled the huge March crash. At the same time, that would mean the peaks we saw in June would be pointing to a gamma flip coming up here soon
kaxo1
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Also people keep pointing to the DXY and saying inflation, but it really just depends on the Euro and JPY, and in this case a rising yen is actually a very bad sign, as that tends to pop up around these major Eurodollar liquidity events like seen leading into March and April. A rising Euro doesn’t really correlate with any usable sense, and is typically just early misguided optimism as seen in 2010, 2015, 2018, etc, and in this case is simply because of their reopening
ProfitHarvest
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@kaxo1, I didn't dive too much into the literature. If it's based on 60 days out, then the much nearer term GEX Price Spike relationship is truly uncanny.
BobbyBanksX
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When distribution is over, it’s over. Until then, it’s picking up the best deals on puts.