Nb. Our comment from the 12/18/20 (Not Published)
Nb. Our comment on 12/21/20
Now the mighty Dec expiry is over, the stark reality of 2021 looms large.
Of course, there is still a shortened week to go for everyone to secure their year-end performance-based fees/bonus’s and the such-like, so this has to be got out of the way first.
Or at least, this has been the case in almost every year we can remember.
This also means the picture painted by the above table could, and probably will change.
But, as it stands, and just one glance should be enough to tell you, that this is not a pretty one.
Every 50-points from 6600 it goes up an exponential ratio level, so if it wants to go higher them’s some serious headwinds, particularly for a January.
Below the zone there is virtually no significant ratio, especially compared to what there is above, which essentially means, no safety net at all.
A saving grace is that we think the zone will move to 6450-6550.
But for us, the best-case scenario, is that this market settles within it, and hopefully just stays there nice and quietly.
Also, don’t get fooled by the level of activity, as when the puddle is so small even a raindrop looks big.
Basically, the world and his brother are all just looking one-way, which seldom ends well for them.
Range: 6450 to 6600
Activity: Very good