The ultra-modern Hedge Pressure technology derives the daily balance point for any stock, ETF, or futures contract by identifying the dealer footprints in underlying options data. When imbalance happens, sellers of these options are forced to “hedge” to remain neutral which adds “pressure” to the trend. This unique approach uses a proprietary value-risk hedging model that calculates a single number at 9:30am EST, at the very start of the day before any action takes place.
Liquidity providers balance the market by matching buyers and sellers. Taking the middle ground they buy options to offset their exposure to risk. We identify these dealer trades and from this roadmap of “insurance” we reverse engineer the risk roadmap of the active bull and bear positions of the market.
The first of its kind. An index tracks the basket of stocks, so if the stocks move first the index is likely to follow. Resilience sorts the fake breaks and stop sweeps from index moves driven by market cap change. We have two proprietary models; one looks at the rate of change of inflating vs deflating market cap of the basket relative to open and close imbalance, the other discovers arbitrage moments by the rate of change of delta hedging of the basket components. The first retail indicator of it’s kind.