Category: Uncategorized

April 21st, 2020 by R1chard

Nb. Our comment from the 04/14/20

Well we didn’t publish anything about the May expiry back on the 14th, however we did about the April expiry, and again on the 17th, so here is a few words about how April expired.

Despite our trading range being up to the bottom boundary of the zone (5650), as the market had managed to position itself just below this, we felt fairly confident we would see the settlement price within its zone.

After all, that was a lot of business done to get the zone to 5650-5750, so there was a lot riding on it.

In the end we suspect they were done by their own success, as the settlement price was 5798.85, almost a full 50-points above the upper boundary, and we really didn’t see that coming.

But, as we said on the 17th, the expiry, for us at least, wasn’t as important as the fact that the market was pretty much back to normal, and players were participating again.

Range:            5150  to  5650         

Activity:          Good

Type:              On balance just bullish

Nb. Our comment on 04/21/20

Getting that feeling of Deja vu again, greatly enhanced with a healthy dollop of coincidence.

As it was back on the 14th, please see above, that the market was at 5842.66, and facing R1 at 5850, albeit in the April expiry.

The first meaningful ratio it had run into now the market was back above its zone, and so therefore, the first futures selling brought about by the dynamic delta.

As history shows, it didn’t react well, dropping to 5575 by Wednesday 15th, with a repeat of this intraday low on the Thursday.

And so, here we are, in the May expiry now, and the market is again facing R1 at 5850.

The big difference this time, is now it is at the start of the expiry, rather than the end.

However, whether this will embolden people to push through the dynamic delta, remains to be seen.

Otherwise, since the 14th, the ratios for this expiry have filled out quite nicely.

So, there is a decent range and depth already in situ, now all we have to ascertain is the markets appetite.

One word of warning, is that the Y ratio bandwidth does stretch from 5850 all the way down to 5350, so if it turns out its not that hungry, then that’s a solid 10% potential pitfall.

Range:            5650  to  5850         

Activity:          Very good

Type:              Neutral

Available to buy now

Posted in Uncategorized

April 17th, 2020 by R1chard

Nb. Our comment from the 04/14/20

 

Strange how these things work out, but 5450 was the bottom of our trading range when we last looked, and here it is, now as the bottom of the new zone.

Truly and sincerely our apologies as we really should have looked at the FTSE since the 30th March, especially under the circumstances.

As you can see in the table above there have been huge changes, not unexpected of course, but now, we just don’t know when they happened.

But it is worth remembering what we said above, “However, if the zone does become 5550-5650, then we would expect to see R1 kick in at 5450 below it, and 5850 above it, but in the meantime, the above is what it is”, as the levels you see now were all in the picture back then.

Just not quite how we predicted, but then again, in these markets, and especially as it has been two weeks in them, then we are more than happy with this, ecstatic really.

The most interesting aspect, for us at least, is the fact this market is back above its zone, as that means it is back in bullish territory, and who would have thought that, even a few days ago.

Talking of which, this expiry has just 4 days to run, so for those of you unfamiliar with this analysis, this is now the rollover.

Boy, it would be quite something, considering all that has happened, if this index expired in its zone.

But, first things first, and it has R1 at 5850 to contend with, and how it reacts to this, will very probably tell us all we need to know about how this expiry will end its last few days.

 

Range:            5550  to  5850         

Activity:          Average

Type:              On balance just bullish

 

 

 

Nb. Our comment on 04/17/20

 

To be honest we were surprised to see the zone move again, but that was only because we didn’t expect there to be many players returning to the market.

But, and as we said above, first things first, and how the market reacted to 5850 did indeed tell us all we needed to know.

Again, we must stress that these calculations should be done daily, otherwise we can’t capture when the zone did actually change.

However, considering the level of activity that we can see, and therefore what must have been transacted prior to this, it is a fairly safe assumption that this change took place for Thursday.

Funnily enough, whether or not the market manages to expire in its zone tomorrow, is not the most important aspect for us, although that indeed, would be remarkable, especially considering the circumstances.

What is the most interesting thing, is the fact that when the market reacted so badly to R1 at 5850, tumbling all the way back to 5576.35, there were enough players, and of sufficient size, to take a punt, and go for a 5650 to 5750 settlement price window.

Ballsy doesn’t begin to cover it.

Dare we even whisper it, but could normality be returning to this market?

The really important detail will now be how the May expiry will set itself up, and therefore, how the market will react from Monday, once these expiry trades are no longer influencing proceedings.

So, watch this space.

 

Range:            5150  to  5650         

Activity:          Good

Type:              On balance just bullish

Posted in Uncategorized

April 15th, 2020 by R1chard

Nb. Our comment from 04/09/20

 

Wacky markets, whatever way you look at them.

Needless to say, we have never seen anything quite like this, and “moderate” activity, and we were being generous, is probably the reason why.

It is very low, but totally understandable considering the circumstance.

However, this in no way distracts from the issues it causes, and the fact that this market is in a Y2 ratio bandwidth that stretches for 400-points, tells you all you should need to know.

For the record, the entire Y ratio bandwidth is an unprecedented 890-points.

Now it is downright weird the zone hasn’t moved, but it doesn’t really need to, as the market being in minimal Y ratio, it could easily, at the drop of a hat.

Some facts, R1 has dropped 300-points and R2 is down 150-points, but thereafter it remains quite steady.

But, as we said last time, fingers-crossed the market bounce from B1 when it was at 2195 (market low 2191.86) is going to be enough, as although it hasn’t moved this time, it did last time, and that was to 1995.

Whatever rhetoric, true or false, comes out of whatever politician, and whatever fundamental or technical analysis says, the ratios are a pure and direct reflection of real and actual money laid down on the table in the index option market, and that is, to us at least, far more representative of what people are really thinking.

The low activity suggests this is minimal conviction, and with the trading range being 2495 all the way up to 3245, so the recent 165-point move since we last published, is really, neither here or there, and therefore, entirely meaningless.

Expiry is at the end of the shortened next week, and we rather doubt it will be as quiet as this week has been, and, yes, we do know it moved 7% on Monday.  

 

Range:            2495  to  3245         

Activity:          Moderate      

Type:              Neutral

 

Nb. Our comment for 04/15/20

 

As we said on the 9th, the zone could “move at the drop of a hat”, and it has.

The market is still “whacky”, but, in all honesty, its sort of exactly what we would expect in such a huge Y ratio bandwidth.

On Monday the zone did actually drop to 2995-3005, but at the same time Y2 collapsed to 2595 from 2895, so this was never going to be the end of its move.

In the meantime, it seems the market and the zone have crossed, going in opposite directions, and what’s more, it looks rather likely the zones next move will be to 2745-2755.

At the end of the day, the Y1 ratio bandwidth, which includes the zone, stretches from 2595 all the way up to 3315, and the zone could end up anywhere within it really.

This is what we call a frictionless market, although, to be fair, it normally only ever applies to the NDX, so it is very rare, unprecedented actually, to see it here in the SPX.

Basically, this means with the absolute smallest possible momentum, the market goes a very long way, a bit like being on ice.

Normally, we only have to explain whether it is a stream, river, pond or lake that is frozen over, to give some inkling of the magnitude of movement possible with the minutest prod.

Here, its more like a frozen ocean.

Considering everyone is talking about the coming recession being worse than the Great Depression, the SPX being off just 15% is as whacky as it gets, especially when you consider we had been saying for a very long time it was 10% offside before all this anyway.

 

Range:            2595  to  3315         

Activity:          Poor 

Type:              Neutral

Posted in Uncategorized

April 14th, 2020 by R1chard

Nb. Our comment from the 03/30/20

 

1st week down, just three more to go.

Obviously, the end of the March expiry was a train wreck, and because of this, the next expiry, April, just can’t adjust quickly enough.

This remains the case, as the table above shows a very unusual ratio configuration.

However, it does appear as if 5550-5650 will very probably be the next zone.

Which, if this is then the case, it is worth noting that the close on Thursday, 5815.73, would have been above it, as would have been Wednesday’s, at 5688.20.

Basically, it is just struggling to find a degree of normality, which it will just not do until the zone does actually change.

Then, and only then, can the ratios either side start adjusting into the more regular pattern.

However, if the zone does become 5550-5650, then we would expect to see R1 kick in at 5450 below it, and 5850 above it, but in the meantime, the above is what it is.

This would then still leave a 400-point Y ratio bandwidth, which would include the zone, but would give plenty of room for manoeuvre to this market.

It would be nice to see this market return to normal, not that it was acting normally prior to this, but past experience, specifically 2009 and 1987, suggest that it takes a good few months or expiries, for this to happen.

Although, this is more a London specific problem, as the US derivative markets “spin-on-a-dime” and practically adjust overnight, or at least in a matter of weeks, not months.

 

Range:            5450  to  5700         

Activity:          Moderate

Type:              On balance bearish

 

 

Nb. Our comment on 04/14/20

 

Strange how these things work out, but 5450 was the bottom of our trading range when we last looked, and here it is, now as the bottom of the new zone.

Truly and sincerely our apologies as we really should have looked at the FTSE since the 30th March, especially under the circumstances.

As you can see in the table above there have been huge changes, not unexpected of course, but now, we just don’t know when they happened.

But it is worth remembering what we said above, “However, if the zone does become 5550-5650, then we would expect to see R1 kick in at 5450 below it, and 5850 above it, but in the meantime, the above is what it is”, as the levels you see now were all in the picture back then.

Just not quite how we predicted, but then again, in these markets, and especially as it has been two weeks in them, then we are more than happy with this, ecstatic really.

The most interesting aspect, for us at least, is the fact this market is back above its zone, as that means it is back in bullish territory, and who would have thought that, even a few days ago.

Talking of which, this expiry has just 4 days to run, so for those of you unfamiliar with this analysis, this is now the rollover.

Boy, it would be quite something, considering all that has happened, if this index expired in its zone.

But, first things first, and it has R1 at 5850 to contend with, and how it reacts to this, will very probably tell us all we need to know about how this expiry will end its last few days.

 

Range:            5550  to  5850         

Activity:          Average

Type:              On balance just bullish  

Posted in Uncategorized

April 9th, 2020 by R1chard

Nb. Our comment from 04/01/20

 

All we can say is that we hope B1 when it was at 2195 and the market hit the intraday low of 2191.86 is going to be enough.

If so, it means this market will need a good memory, something in fast markets it’s not exactly renowned for.

The reason we say this is because the ratios below the zone continue to tumble.

Last time the ratio range was 2380 (R3) to 2745 (R2), so the big moves we have seen in the last few days were only to be expected.

Although, we were going to get big moves no matter where the ratios were.

As the market has recovered a bit, and don’t forget end of quarter rebalancing, we have put today’s trading range at 2545 to 2795, but we are not daft enough to think this market is going to open above 2545, so this is just protocol.

Basically, R3 is now 2305, and for us that is a finger crossing and hope support level, with the top end of the range 2545, being where R2 has fallen to.

In effect, this is the market staying within the same bandwidth.

We say, we hope, because B1 has collapsed to 1995, so we sincerely hope we don’t have to call on that again.

The zone will move, but really it should have done so by now already, again a concern, as is the very low levels of activity.

The ratios are what they are in the table above, but please remember, they are changing all the time.

 

Range:            2545  to  2795         

Activity:          Poor 

Type:              Neutral

 

 

Nb. Our comment for 04/09/20

Wacky markets, whatever way you look at them.

Needless to say, we have never seen anything quite like this, and “moderate” activity, and we were being generous, is probably the reason why.

It is very low, but totally understandable considering the circumstance.

However, this in no way distracts from the issues it causes, and the fact that this market is in a Y2 ratio bandwidth that stretches for 400-points, tells you all you should need to know.

For the record, the entire Y ratio bandwidth is an unprecedented 890-points.

Now it is downright weird the zone hasn’t moved, but it doesn’t really need to, as the market being in minimal Y ratio, it could easily, at the drop of a hat.

Some facts, R1 has dropped 300-points and R2 is down 150-points, but thereafter it remains quite steady.

But, as we said last time, fingers-crossed the market bounce from B1 when it was at 2195 (market low 2191.86) is going to be enough, as although it hasn’t moved this time, it did last time, and that was to 1995.

Whatever rhetoric, true or false, comes out of whatever politician, and whatever fundamental or technical analysis says, the ratios are a pure and direct reflection of real and actual money laid down on the table in the index option market, and that is, to us at least, far more representative of what people are really thinking.

The low activity suggests this is minimal conviction, and with the trading range being 2495 all the way up to 3245, so the recent 165-point move since we last published, is really, neither here or there, and therefore, entirely meaningless.

Expiry is at the end of the shortened next week, and we rather doubt it will be as quiet as this week has been, and, yes, we do know it moved 7% on Monday.  

 

Range:            2495  to  3245         

Activity:          Moderate      

Type:              Neutral

Posted in Uncategorized

April 1st, 2020 by R1chard

Nb. Our comment for 03/26/20

Well we couldn’t have published, on Sat 21st March, our last comment (see above) at a more opportune time, as the very next trading day, Monday 23rd saw the SPX hit an intraday low of 2191.86.

The fact it had closed the previous Friday at 2304.92, meant that B1 was the next line of ratio support.

And, significantly, it was B1.

Let us hope it has done the trick, as a quick glance at the table above, will show you that B1 has now slipped to 2070, which is really not good news, unless you’re a bear that is.

However, the main takeaway from this bounce for us, is that rationality has returned.

This is no minor facet, as last expiry there was no rhyme or reason, just panic, whereas now, it seems that the market is once again taking heed of the dynamic delta.

And the amount of futures buying produced by the dynamic delta of ratio the magnitude of B1, should really stop an express train, unless, like last trip, it is runaway mode.

Anyway, the market is now in a massive R2 ratio bandwidth, that stretches for 365-points, so volatility should remain, but hopefully this level of dynamic delta will take everything down a notch, or two.

Although, do not get complacent, as not only are the ratios falling below the zone, they haven’t really increased above it.

And, pointedly, the zone itself has not moved at all, and remains entrenched up there in the ozone layer.

Considering the dearth of ratio still surrounding it, then it should really be dropping down to meet the market, and its failure to do so, means that everything is not quite back to normal, which is a grave concern.

 

Range:            2380  to  2745         

Activity:          Moderate      

Type:              On balance bullish

 

 

Nb. Our comment on 04/01/20

 

All we can say is that we hope B1 when it was at 2195 and the market hit the intraday low of 2191.86 is going to be enough.

If so, it means this market will need a good memory, something in fast markets it’s not exactly renowned for.

The reason we say this is because the ratios below the zone continue to tumble.

Last time the ratio range was 2380 (R3) to 2745 (R2), so the big moves we have seen in the last few days were only to be expected.

Although, we were going to get big moves no matter where the ratios were.

As the market has recovered a bit, and don’t forget end of quarter rebalancing, we have put today’s trading range at 2545 to 2795, but we are not daft enough to think this market is going to open above 2545, so this is just protocol.

Basically, R3 is now 2305, and for us that is a finger crossing and hope support level, with the top end of the range 2545, being where R2 has fallen to.

In effect, this is the market staying within the same bandwidth.

We say, we hope, because B1 has collapsed to 1995, so we sincerely hope we don’t have to call on that again.

The zone will move, but really it should have done so by now already, again a concern, as is the very low levels of activity.

The ratios are what they are in the table above, but please remember, they are changing all the time.

 

Range:            2545  to  2795         

Activity:          Poor 

Type:              Neutral

Posted in Uncategorized

March 30th, 2020 by R1chard

Nb. Our comment from the 03/26/20 (Not published)

 

Nb. Our comment on 03/30/20

 

1st week down, just three more to go.

Obviously, the end of the March expiry was a train wreck, and because of this, the next expiry, April, just can’t adjust quickly enough.

This remains the case, as the table above shows a very unusual ratio configuration.

However, it does appear as if 5550-5650 will very probably be the next zone.

Which, if this is then the case, it is worth noting that the close on Thursday, 5815.73, would have been above it, as would have been Wednesday’s, at 5688.20.

Basically, it is just struggling to find a degree of normality, which it will just not do until the zone does actually change.

Then, and only then, can the ratios either side start adjusting into the more regular pattern.

However, if the zone does become 5550-5650, then we would expect to see R1 kick in at 5450 below it, and 5850 above it, but in the meantime, the above is what it is.

This would then still leave a 400-point Y ratio bandwidth, which would include the zone, but would give plenty of room for manoeuvre to this market.

It would be nice to see this market return to normal, not that it was acting normally prior to this, but past experience, specifically 2009 and 1987, suggest that it takes a good few months or expiries, for this to happen.

Although, this is more a London specific problem, as the US derivative markets “spin-on-a-dime” and practically adjust overnight, or at least in a matter of weeks, not months.

 

Range:            5450  to  5700         

Activity:          Moderate

Type:              On balance bearish  

Posted in Uncategorized

March 26th, 2020 by R1chard

Nb. Our comment on 03/20/20

We are going to start the April commentary with a reminder of what we said at the end of our last one; “Virus aside, any market that takes on the dynamic delta that occurs when it interacts with the DR ratio, in this case futures buying, is a market that has that many futures to sell to meet that demand, so worth bearing this in mind.

At the end of the day, if the market is happy to supply enough to meet this naturally occurring demand, then it will not have any effect, which will only come when that demand outstrips the supply”.

The point being, is that it doesn’t matter how much dynamic delta is generated until this is greater than the markets appetite.

And currently this market is ravenous, and fuelled by extreme emotion, so worth remembering.

However, there are a few points to take away, the first being that the zone is rather bizarrely, actually higher than March’s was.

Secondly, the Y ratio bandwidth is now a ridiculous 490-points.

Thirdly, we are now in an intermediary expiry, so everything, under normal circumstances, should quieten down.

Finally, and again, under normal conditions, the market should become more sensitive to lower ratios. As in we mentioned that in a triple it was not unknown for it to trade between the B ratios, well, in an intermediary, this normally changes to mid R ratios.

Actually, there is one other point, which is that this market is now as vulnerable to a crash-up as it once was to a downward correction, as bizarre as that may seem.

And, although we haven’t mentioned it for a while, we do strongly feel that the regulators should have been aware of how overstretched this market had become, and should have taken pre-emptive action, as they had at least two months warning to do something, if only a warning, so shame on them.

 

Range:            2345  to  2595         

Activity:          Average      

Type:              Neutral

 

Nb. Our comment for 03/26/20

Well we couldn’t have published, on Sat 21st March, our last comment (see above) at a more opportune time, as the very next trading day, Monday 23rd saw the SPX hit an intraday low of 2191.86.

The fact it had closed the previous Friday at 2304.92, meant that B1 was the next line of ratio support.

And, significantly, it was B1.

Let us hope it has done the trick, as a quick glance at the table above, will show you that B1 has now slipped to 2070, which is really not good news, unless you’re a bear that is.

However, the main takeaway from this bounce for us, is that rationality has returned.

This is no minor facet, as last expiry there was no rhyme or reason, just panic, whereas now, it seems that the market is once again taking heed of the dynamic delta.

And the amount of futures buying produced by the dynamic delta of ratio the magnitude of B1, should really stop an express train, unless, like last trip, it is runaway mode.

Anyway, the market is now in a massive R2 ratio bandwidth, that stretches for 365-points, so volatility should remain, but hopefully this level of dynamic delta will take everything down a notch, or two.

Although, do not get complacent, as not only are the ratios falling below the zone, they haven’t really increased above it.

And, pointedly, the zone it self has not moved at all, and remains entrenched up there in the ozone layer.

Considering the dearth of ratio still surrounding it, then it should really be dropping down to meet the market, and its failure to do so, means that everything is not quite back to normal, which is a grave concern.

 

Range:            2380  to  2745         

Activity:          Moderate      

Type:              On balance bullish

Posted in Uncategorized

March 21st, 2020 by R1chard

Nb. March Expiry

 

We thought people might be interested in the final ratio reckoning of the triple witching March expiry, where the eventual settlement price was 2437.98.

That is one really big OUCH.

In our last comment we mentioned that in these big expiries, back in the day, going from B1 to B1 was quite common.

However, what was uncommon, was that there was such a gargantuan Y ratio bandwidth, ending at an astonishing 400-points wide.

We also mentioned, repeatedly, that an 8% to 10% move was very probable, although, and holding our hand up here, we never envisaged a rout such as we have had.

Although, once you have dropped several hundred points through the minimal Y ratio then there is a natural degree of momentum, couple that with the lack of the high end of ratio, and yeah, we can see how it happened.

Nevertheless, finishing in B1 is going to hurt, as the real kicker, was the total lack of any recovery into the more minor levels of ratio for the expiry.

And, although not in the table above, the fact that B2 finished at 2420, we suspect that in the end the market did exceptionally well to finish above this.

All very expensive, but hopefully now we enter into an intermediary expiry, things may quieten down a bit, but with nerves so frazzled, we suspect it would be better to be entering a triple rather than exiting one at this present moment in time.

 

Range:            2420  to  2615         

Activity:          Moderate      

Type:              On balance only just bullish

 

 

Nb. April Expiry

We are going to start the April commentary with a reminder of what we said at the end of our last one; “Virus aside, any market that takes on the dynamic delta that occurs when it interacts with the DR ratio, in this case futures buying, is a market that has that many futures to sell to meet that demand, so worth bearing this in mind.

At the end of the day, if the market is happy to supply enough to meet this naturally occurring demand, then it will not have any effect, which will only come when that demand outstrips the supply”.

The point being, is that it doesn’t matter how much dynamic delta is generated until this is greater than the markets appetite.

And currently this market is ravenous, and fuelled by extreme emotion, so worth remembering.

However, there are a few points to take away, the first being that the zone is rather bizarrely, actually higher than March’s was.

Secondly, the Y ratio bandwidth is now a ridiculous 490-points.

Thirdly, we are now in an intermediary expiry, so everything, under normal circumstances, should quieten down.

Finally, and again, under normal conditions, the market should become more sensitive to lower ratios. As in we mentioned that in a triple it was not unknown for it to trade between the B ratios, well, in an intermediary, this normally changes to mid R ratios.

Actually, there is one other point, which is that this market is now as vulnerable to a crash-up as it once was to a downward correction, as bizarre as that may seem.

And, although we haven’t mentioned it for a while, we do strongly feel that the regulators should have been aware of how overstretched this market had become, and should have taken pre-emptive action, as they had at least two months warning to do something, if only a warning, so shame on them.

 

Range:            2345  to  2595         

Activity:          Average      

Type:              Neutral

Posted in Uncategorized

March 6th, 2020 by R1chard

Nb. Our comment from 03/03/20

 

Well, really, you should not have been surprised by this move, or the timing of it, being at the dawn of a new expiry.

As you know we were expecting a big move, but this went over and above even what we anticipated.

However, in days of yore, well a couple of years ago anyway, when it came to a triple, then everything just ratcheted up several notches.

So, where we would see the R ratios as pivotal, in a biggie, this would up to DR or B1.

As it hasn’t happened for a while, we haven’t mentioned it, but that doesn’t mean to say this, what we are seeing now, is abnormal.

In fact, quite the opposite, as this, to us at least, is the return to normal.

What isn’t so normal, and is fact very abnormal, is 235-points of Y ratio bandwidth, as, back in the day, one might see a tenth of this, in a triple.

The problem is, when a market has just transversed the entire length of this abnormal minimal ratio bandwidth, there is a degree of momentum inherent, and add another surprise whammy, and then you get a market taking on ratios it hasn’t had the nerve to for a quite a while now.

The intraday low on Friday, 2855.84, was deep into DR ratio, which is a huge amount of dynamic delta to take on, but one that is not unknown in a triple.

The fact the market closed above 2945 is also very significant, as was the fact the intraday low on Monday was 2945.19 and its close above 3085.

It still has a long way to go, but the table above will show you the significant hurdles ahead, on top of which, we rather doubt that we have seen the last of the zones moves down, but, it’s a start.

More to the point, we now know this markets pain threshold.

 

Range:            3085  to  3145         

Activity:          Good      

Type:              Neutral

 

 

Nb. Our comment on 03/06/20

 

Last Friday the intraday, and, so far at least, expiry low, was 2855.84, which was deep in the DR ratio, then around 2895.

So, on todays ratio table above, it is perhaps worth noting that DR now doesn’t start until 2870.

However, from just below 2900, which was the old level, there is a significant step-up in the ratio, as it is closer to being DR than R3.

Perhaps worth reminding that the ratios are in ranges, so a certain point, such as 2895, could be just below the threshold of DR, but still a long way above from the minimum that qualifies as R3.

Anyway, it does show that the ratios are falling below the zone, which is bearish, as is the fact the market is below its zone.

The zone has dropped already this expiry, and although it is static today, we very much doubt that the next time we calculate the ratios it will be where it is now.

The good news, is that as the ratios tumble it brings the Y ratio bandwidth closer.

Today, it is standing at 3095, so it wouldn’t take much for this market to claw its way back into it, making this level very significant.

More good news, is that there is still two weeks to go in this expiry, so plenty of volatility left to take advantage of.

Virus aside, any market that takes on the dynamic delta that occurs when it interacts with the DR ratio, in this case futures buying, is a market that has that many futures to sell to meet that demand, so worth bearing this in mind.

At the end of the day, if the market is happy to supply enough to meet this naturally occurring demand, then it will not have any effect, which will only come when that demand outstrips the supply.

 

Range:            2945  to  3045         

Activity:          Moderate      

Type:              Neutral

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