To be honest we are probably as bored as
you are seeing it, the comment “as we said back on….” so now the table above
will show the ratio as published in our last comment, with the corresponding
comment here in the first paragraph. The current ratio will be in the second
column with its comment below.
The first triple witching has come
AND there is still almost 200-points of
Y ratio bandwidth.
So, shock susceptibility is as huge, the
only question is whether the R ratios above the zone will hold fast or start
Also, we anticipate the zone moving up to 2695-2705, the question is when?
to 2755 or 2780
Obviously, the zone has exceeded
expectations, albeit had we published in the last ten trading days this further
move would have been apparent, it now being at 2745-2755.
Needless to add, with the zone moving,
the R ratios had to recede.
The real question is looking forward,
and it is all about R1 now, as it held yesterday (intraday high 2803.12) but
was severely tested on Monday with the intraday high of 2813.49.
So, it has held, but under huge
pressure, and next visit would be strike 3.
Furthermore, don’t forget this is a
triple, and in these biggie’s R1 doesn’t normally carry too much weight.
Having said that, the fact that this is
a triple and we only go as high as R3, on both sides, is very alarming, as
historically, if this index gets trending, it takes at least DR to act as
moderator, and again, this holds true for both directions.
The fact that the R ratios are receding
and the zone is climbing is bullish, but what we would really like to see is
the ratios below the zone climbing, which they have, a bit, but the Y ratio
bandwidth is still 185-points.
This is what it was back on the 13th
The fact this expiry is so
underdeveloped coupled with such a ludicrously wide Y ratio bandwidth means we
are exceedingly nervous.
The trading range below reflects the
zone, as that should offer support.
Our only surprise is that this index isn’t whipsawing around by 2% or 3% on a daily basis, which makes us suspect that one of the other two must be interacting with their ratios.