FTSE & DAX Ratio Table 9th May 2018
It is at times like this that the FTSE’s ratios need to be produced daily, such has been the magnitude of change.
So, don’t forget, the ratios result in dynamic delta hedging and so are a direct consequence of the type and level of activity, entirely mathematical in other words.
No changes below the zone, which also remains steady, but above it and 7550 has fallen from R3 to R2, and we did point out it was in a downward trajectory, so no great surprise, similarly the low yesterday being 7550.44.
Therefore, it still remains a very significant level, but mainly now because it is all Y ratio below it, and you know what that means, as we have just witnessed what has happened in the US indices when in a mammoth Y ratio bandwidth.
Range: 7250 to 7550 or 7550 to 7650
Our last comment in the DAX was “it closed on the Friday of the last expiry at 12540 so it has moved just 70-points in a week and a half….. with such a huge Y ratio bandwidth this just can’t last”.
And it has duly obliged as despite two down days totalling 150-points it is still up 300-points.
The zone has slipped, ignoring the market going the other way, and activity has held up, but the Y ratio bandwidth, which is what it is all about after all, is still a very impressive 800-points.
So, it has narrowed, but not by much, however the difference now is the market is in the R ratios at one end, so unless ratios change that’s now a really big void below.
Range: 12800 to 12950
Activity: Very good
Type: On balance only just bearish