The FTSE mighty Dec expiry won’t disappoint.

FTSE is simply all about the auctions.

 

Nb. Our comment from the 11/16/20 (Not published)

 

Nb. Our comment on 11/23/20

 

Well the mighty Dec did bring its weight to bear on the Nov expiry so much so it was down to the expiry auction for the last-gasp attempt to get it back to around 6400.

One of London’s peculiarities is what we refer to as the “amber gambler(s)”.

Nothing to do with a red light, but rather with the expiry looming, London quite often sees a big spike in activity in a particular pair of strikes.

This time round it was the 6400 and 6450 that saw all the activity, which led us to suspect an expiry somewhere between the two might be rather welcome.

As it happens, the EDSP was 6390.08, arrived at by another of London’s peculiarities, an auction held at 10:10.

This is highlighted by the fact the official intraday high on Friday was 6386.70.

Yeah, we can’t understand, let alone justify it either.

Where the mighty Dec came to weigh in, was the fact that 6350 was where DR started, and this index had trouble at this level all week.

Which brings us round to the next peculiarity, the closing auction, and just like the expiry auction, we can’t understand or justify this either.

Anyway, the real time close was 6346.74, and it was the auction that took it 1.45-points above DR.

How will this affect the FTSE today, we just don’t know.

DR is a massive bandwidth, and obviously 6350 is the critical demarcation line.

But whether Friday’s closing auction was an attempt to leapfrog it, so an intentional gambit, will dictate whether or not the plan is to stay above it, or, perhaps, it was just as a result of the Nov expiry hangover, just don’t know, sorry, but guess we will find out soon enough though.

 

Range:            6250  to  6350        or        6350  to  6750        

Activity:          Poor

Type:              On balance bullish

 

 

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November 23rd, 2020 by