FTSE Dec to Jan Ratio Rollover Table with levels and comment.
Did you listen? Probably not, as back onthe 12th November, at this very point (1st day of therollover), we mentioned that the FTSE in this expiry trades between the B ratiolevels.
And please check, but back then B1 was
at 6950 and B2 at 6650 with the zone at 7150-7250.
We also mentioned that the zone should
really be 6950-7050 (where it is now) and suffice it to say those first two
weeks of this expiry were top and tailed by 6950 and 7050. Again, please check
on the charts.
These last two weeks have been all about
where B2 was, being 6700, and is still what we would class as a “step-up”, even
though the official level is now 6550.
Basically, and despite Wall Street’s
worst efforts, 6700 caught the low from Thursday 6th Dec to Tuesday
Incidentally, the expiry intraday high
is 7145.49 (3/12/18), which you should also recognise as the bottom boundary of
the old zone.
It has been a tumultuous expiry, and
just so very typical of the biggest of the big, the mighty Dec, so all in
accordance with every expectation and all so utterly predictable, and if one
was aware of where the ratio levels were, and even with all the 4th
Estate noise, this expiry should have held no surprises.
The only thing that remains is for it to
be in or around it’s zone by this Wednesday.
Range: 6550 / (6700) to 6850 or 6850
At this point we generally strive to
point out that after the biggest of the big comes the smallest of the small
Basically, Jan is like falling off a
cliff where activity is concerned.
The proverbial reset button, where it
all starts again, building up to Dec 2019.
However, in a “normal” year, sensitivity
would return, and therefore we would expect the market to trade between the R
And, of course, this Jan would be no
exception, that is, apart from the current alignment of what little ratio there
is out there.
This can be no better exemplified than
by the fact the zone is a staggering 200-points wide.
On top of this the Y Ratio bandwidth
stretches from 6700 (that level again hem hem) all the way up to 7150.
So, as far as predictions go, 200-points
of zone is more than enough for London to have a very exciting time in, but
when you add the Y Ratio either side it gets more like ecstatic.