FTSE and DAX today’s ratio levels and comment

Well that’s the first “extra” week out of the way for the FTSE and although the market has been rather boring the derivatives have certainly not been.

To extricate itself from deep inside R3, albeit an inherited position has been an achievement in itself and it did not go unnoticed that the low on Friday was 7242.23 which just went to prove 7250 did indeed “punch above its weight”.

This means the next stop should be 7350 and a knock on the door of its NZ.

Please don’t forget last expiry when this index spent virtually the entire time inside its zone apart from the allowable, and expected, grey area.

Range:            7150  to  7350

Activity:          Poor

Type:              On balance not bearish

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Today is just the sort of scenario in the DAX where we always say those that purport to regulate or stabilise markets should be well prepared for any eventuality as it should be no surprise that there is no meaningful ratio between 11950 and 12850, and that there hasn’t been for some time.

We are not saying the market will but rather it could and so if it does it will just reveal that yet again they have no comprehension of what market dynamics are in this century if they express even the slightest hint of surprise.

We do not normally drill down to this level in activity but under the circumstance we feel we should mention one very large OTM call trade has resulted in an overall positive reading, which does tend to mask the underlying sentiment which without this would be bearish again today.

Range:            12550  to  12850

Activity:          Very good

Type:              On balance only just bullish

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