Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

GEX ATH GTFO

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Today (Oct 13th), the GEX had its highest reading EVER. I’d like to play with the data and see if I can adjust it for volatility because it seems that the moves have become more and more wild over the past couple of years (ever since Volmageddon). Anyways, back to the topic at hand. Here is today’s reading (click for the zoom in, it’s HUGE). Also, note what usually takes place within a month or so afterwards on SPX (green).

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Gold Has Something to Prove

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Gold had a significant up day on Friday closing near the highs. At first glance, it would seem like a positive development and that gold miners might be in for another leg up. I would say a case could be made for either outcome, but this week should be a decision week for what is next for the gold and miners.

This is gold going back 20years. It is a weekly chart with a 52-week bollinger band. Notice how well price holds the 52-week MA during gold bull markets suggesting it is still in one. However….

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All Aboard?

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The one thing I especially like about Index trading is that it’s easier in my opinion to determine the likely direction because you can get a direct reading of all of its constituents. I’m going to share a chart that I’ve been using for some time now that gives me a general idea of the likely strength or weakness of the S&P500. It is the breadth readings for “Percentage of Stocks Above X simple moving averages“.

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Gamma Gamma Bo-Bamma…

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Over the weekend, I introduced Slope to some DIX pics. Now I would like to introduce you to the GEX which is short for “gamma exposure”. Basically, it’s the numerical sum of all the long gamma minus all the short gamma on S&P500 options (not SPY).

If you’re not familiar with gamma, here is the official definition:

Gamma is the rate of change for an option’s delta based on a single-point move in the delta’s price. Gamma is at its highest when an option is at the money and is at its lowest when it is further away from the money.”

According to their whitepaper they calculate it as follows:

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Big Swinging DIX

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I don’t hear many people talk about the Dark Pools Index, but here is a quick introduction. If I am understanding it fully, and that is a big IF, it is an attempt by a market researcher (who can be found on twitter under the handle @Squeezemetrics) to hazard a guess at the buying and selling demand being processed by market makers. I’m sure I cannot explain it fully and you would be better off reading the white paper at squeezemetrics.com. It is a quick five minute read and very interesting. All data is freely downloadable to play with as you please.

Generally speaking, when the DIX (Dark Pool Index) moves to the upper extremes, dark pool buying is a primary influence. When the DIX moves to the lower extremes, dark pool selling is the the primary influence. See for yourself.

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