GFL
GFL Environmental Inc. Subordinate Voting Shares
stock NYSE

today was a a great example of a gamma squeeze late in the trading session.
In normal conditions (or when SPX is above its gamma flip line)...a big move down today under the ES and NQ overnight low...typically we will see at some point a rally to the upside that gets oversold on the 5min CCI or RSI followed by a reversal back to the lows.
Rarely is the overnight low recovered. Extremely rare when the market tanks like earlier today.
However we were considerably under the GFL and when the rally happened... it just kept going UP. In fact coming back into the overnight range.
The rally continued into the after hours session and is still going!
Why does this happen? It's all because the options traders are getting their positions smoked and dealers are hedging by buying shares.
This information is readily available with an AI search on the gamma flip line and its relation to the markets.
a strong word of caution here ...
IMO this rally is a gamma squeeze, and does not necessarily mean that we are going to have a bullish Friday or a return back to bullish markets.
As a day trader knowing where SPX is trading relative to that gamma flip line, it's so important.
Managing risk becomes even more so.
I hope this information has helped someone understand the whipsaws and volatility that we are currently experiencing. Maybe it'll prevent some blown accounts.
Good luck to everyone.

today was a a great example of a gamma squeeze late in the trading session.
In normal conditions (or when SPX is above its gamma flip line)...a big move down today under the ES and NQ overnight low...typically we will see at some point a rally to the upside that gets oversold on the 5min CCI or RSI followed by a reversal back to the lows.
Rarely is the overnight low recovered. Extremely rare when the market tanks like earlier today.
However we were considerably under the GFL and when the rally happened... it just kept going UP. In fact coming back into the overnight range.
The rally continued into the after hours session and is still going!
Why does this happen? It's all because the options traders are getting their positions smoked and dealers are hedging by buying shares.
This information is readily available with an AI search on the gamma flip line and its relation to the markets.
a strong word of caution here ...
IMO this rally is a gamma squeeze, and does not necessarily mean that we are going to have a bullish Friday or a return back to bullish markets.
As a day trader knowing where SPX is trading relative to that gamma flip line, it's so important.
Managing risk becomes even more so.
I hope this information has helped someone understand the whipsaws and volatility that we are currently experiencing. Maybe it'll prevent some blown accounts.
Good luck to everyone.