FTSE Nov to Dec Rollover 12th Nov 2018
When we last looked at the FTSE it had just bounced off R2 with the intraday, and expiry, low of 6851.59, and was stuck trying to break through the top boundary of its zone, which was then at 7050.
And as we pointed out that it was “chomping at the bit” the breakthrough came that very day.
As the ratio table stood back then then once above 7050 it was Y1 all the way up to 7150, which it hit last Thursday with the intraday high of 7171.69, before closing at 7140.68.
Now, as you can see from the table above the zone has moved again, and is now 7050-7150, both of which have been the pertinent levels for the best part of the last two weeks.
There is still some Y ratio either side, but we are now into the rollover and expiry, and this is into the mighty Dec which can easily dwarf Nov, so it can be quite unique in this respect.
Range: 7050 to 7150
Type: On balance bearish
And the first look at the gargantuan Dec expiry does not disappoint for potential conflict.
Because, as you can see here the zone is 7150-7250, already above Nov.
The trouble is it is already flanked by R ratios, so it is unlikely to move.
Worth noting the common denominator is 7150.
Finally, once this expiry gets a head of steam up, which can start this week, then it can, and does frequently, trade between the B ratios.
This huge jump in activity, which is reflected in equities, is almost always misinterpreted for what it actually is, which is a colossal jump in dynamic delta that comes from trading against the Y ratios to suddenly facing the B ratios.
Range: 6950 to 7150