@everyone SwingJam’s Weekend Review:General Market Update Quick Summary: This video covers my main thoughts going into the next few months. I think it is likely we see some more downside as the market has changed its character with high volume and volatile consolidation instead of a quick V bottom correction, SPY has broke the 50 sma and we have catalysts with OPEX behind us and the Evergrande situation in China. https://youtu.be/FTmy2ilMKTw
DIX/GEX Interpretation – Part 2
Why is this important? Well it can give us a heads up as to where the market may be headed based on what the folks with bigger pockets are doing.
DIX posted a 47.5% value today! This is incredibly bullish along with the 6+ billion MOC today. I do want to note that an issue with these numbers is OPEX – with it being quad-witching today – these numbers can often get skewed as funds are moving around and repositioning. Nevertheless 47.5% on DIX is generally very bullish – rule of thumb is >45% is bullish. 40-45% is okay for trend continuation. <40% is bearish.
GEX also took a massive move down today – still not in the negative zone that I like to look for to know when to buy the dip – if you look at my past posts on GEX you will know that every single time GEX has gone to negative values in the past 2 years – it marked the Buy the Dip moment. Refer to previous charts for the explanations if wanting more details. GEX didn't hit negative values today but it did make a nice dip to a relative low where the market has bounced in the past. It's really no surprise that GEX moved down so much today as the markets moved quite a bit (was volatile) and we also had OPEX today where we had options expiring (thus no need to hedge against those positions anymore).
The conclusion? Well it looks like next week could be a good dip-buying opportunity which makes sense as markets usually rise up after OPEX for at least a couple days – that said seasonality says September is bearish. So size in appropriately – and if we get GEX in the negatives – that's when I will personally be going larger size.
Last tag today everyone, I promise…
So DIX/GEX posted some interesting numbers today… but first for those who are new – what is the DIX/GEX?
DIX – “The Dark Index (DIX) is a dollar-weighted measure of the Dark Pool Indicator (DPI) of the S&P 500 components. When the DIX is higher, market sentiment in dark pools is generally more bullish. When the DIX is lower, it is more bearish or uncertain.”
GEX – “Gamma Exposure (GEX) is a dollar-denominated measure of option market-makers’ hedging obligations. When GEX is high, the option market is implying that volatility will be low. When GEX is low, volatility is high, and while we expect a choppy market, further losses are unlikely.”
FOMO: XT PODCAST EPISODE 14 FT @『TimeHawk』
Thank you guys for coming to another episode of the show. We had a follow up conversation in regards to spreads with @『TimeHawk』 He also discussed how he focuses on seasonality, why he prefers swing trading vs intraday day trading, and so much more!
Friendly reminder we still have one more episode today at 3PM EST, we are sitting down with @WestwoodEquity2021
He recently became a very successful figure within trading, so we’re learning his story and how he got into the limelight and position that he’s currently in. This is the first time we are featuring a regular member within our community, so make sure to show him some love. @here
@everyone This one is a little shorter and explains why we were also bullish on the SQ play. See and find out what triggered the play and why we took it. Obviously we let you in on where we saw a god target. Have a look. We were also playing against the market on this one that ended up pretty green.
@everyone This morning we played MU shortly after the bell. In this recap we explain why we took it and what we were looking at, even if the market was dropping. We managed a nice 100% plus play intra-day on this one. Take a few minutes and let me know if this helps.
FOMO: XT PODCAST EPISODE 13 FT @RoysDad
Welcome back to another week of the show! We hit a month of consistent episodes so I want you all to give yourselves a pat on the back. Without you guys this wouldn’t be possible. So from Me, @Xtrades Option Guru and the rest of the XT team, I want to say thank you.
We sat down with @RoysDad today and had a small introduction on spreads, how he learned to trade them, what he went through to get to the point hes at knowledge wise, and many more. I think we all forget that this is a long haul game, and of course not being well fit with the knowledge to perform just starting as a trader is hard on someone and their portfolio. But continue to learn, and push forward daily and eventually, trial and error should steer its course with your profit margins.
I also want to give a shoutout to @COOKUMMA. We recently had a few members reach out in regards to not being able to hear the show due to them having hearing impairment issues, but we got y’all as well! Attached is a transcript of this mornings show. We will be tacking these on per each episode if you want to just skim it over as its a rough summary of our convos. We decided to not add the premarket analysis part to this particular transcript, as the edited audio comes out later into the session, so let me know if this is something that you guys do want.
As always, the next episode will be on 9/16 @ 8:30 AM EST FT. @『TimeHawk』 We will likely be continuing our conversation from this morning as hes a similar trader, along with a few other goodies. I hope to see you all there