SPX'S GEX is printing high numbers !Gamma exposure (GEX); refers to the sensitivity of existing option contracts to changes in the underlying price. Like with DPI, substantial imbalances can occur between market-makers' call- and put-option exposures, and when those imbalances occur, the effect of their hedges can either accelerate price swings (like a squeeze) or stifle movement entirely.
GEX
Ready for a Big Correction? US30 - SPX500 - NDX 15/4/2021We've been seeing a huge rise in the Dow Jones, now it needs a breather so I'm trying to enter a short after a possible stop hunt to the upside, right around 34k. The market is driving through a bunch of potholes with fears of QE ending. Powell mentioned the FED will taper QE before they hike rates, hedge funds with exposure to quadrillions in the derivatives bubble, system risk at an all-time high. GEX at an all-time high too, dark pools getting in on the Short of the Century?
What do you think? Will it go parabolic instead?