Using negative GEX as a potential buying condition and strengthened by a DIX value ≥ 0.45, I charted all of the times those conditions were met (since May 2011).
One often finds campaign activity (above images) where MMs are accumulating shares and, admittedly, this could be a period when one might take on a more bullish bias. But these signals, by themselves, need to be traded in the context of the auction market process. They are not stand-alone buy signals. In addition, there are many times when dark pool activity and gamma exposure simply do not add any increased clarity.
To be balanced, there are times (approximately ten) in the squeezemetrics’ data where the >0.45 DIX + negative GEX provided excellent buy signals. (This occurred recently, prompting my two analyses.)
Bottom line: While helpful, at times, many long entries are not signaled and many signals, based on a DIX >0.45/negative GEX coincidence, require skillful trading within the context of the auction process.
Not to be forgotten, however, is my recent analysis of the DIX-GEX combination’s sell signaling …and how it does a great job of protecting long equity positions from imminent drawdowns.