FTSE Great 2 weeks trading, if you knew where the zone was.
Nb. Our comment from the 09/03/19
Well you just won’t get a better example of the ratios in action than what happened last week, on Tuesday and Wednesday.
Don’t forget London was closed last Monday, so the Tuesday was the first opportunity to react to the previous Friday’s massive drop of 623-points on the DJX, despite the fact it finished the Monday up 270-points.
The FTSE hit R3 at 7050, which was a big jump up from R1, again, please remember these ratios are exponential, hitting the intraday low of 7044.73.
On the Wednesday, reacting to Wall Street’s overnight reversal, the FTSE’s intraday low was 7050.00.
You just can’t get more precise than that.
The only change in the ratios below the zone, is that Y2 drops to Y1.
The only change above the zone, is R2 moves up to R3, which now therefore starts at 7450.
Of course, the real change is the actual market, as that is now back within its zone.
That’s a very impressive leap up of 250-points, 3.55%, in just 4-days.
We would like to see it hold inside its zone, for at least a few days, but it will be a tough ask, especially with so much Y ratio still around in the US indices.
Also, there is still three weeks to run in this expiry, which is a biggie, so it will only get more volatile towards the end, so a quiet week now would be handy.
Range: 7250 to 7350
Nb. Our comment on 09/16/19
Well the FTSE certainly did manage to achieve what we asked, as it stayed within its zone for the last two weeks.
Since our last comment (3rd September) that week it was all about the bottom boundary of their zone, 7250.
The intraday lows on the following four days being 7239.10, 7268.19, 7250.63 and 7244.13, but on each occasion finishing back above it, and therefore in its zone.
Last week started very nervously, and on Monday it could have all gone very bearish, with the close of 7235.81.
However, Tuesday saw normality return, and the next three days again saw this market close in its zone.
But now it was the upper zone boundary, 7350, that came under attack, with the intraday highs of 7346.71 and 7369.34 on Wednesday and Thursday.
Fantastic trading, if you knew where the zone was of course.
Friday, after testing 7350 throughout the day, eventually saw it capitulate, hardly unsurprising, especially as it was strike 3 anyway.
It is the rollover on Wednesday and the expiry on Friday, so after two weeks being cooped-up inside its zone, we can understand the market getting agitated by the increasing activity levels, and we hope it will be patient for just a few more days, but regardless, it’s done enough already so far this expiry, so we won’t hold it against them.