SPX , NDX and DJX Ratio Table, levels and comment.
fascinating aspect about these ratios is that the potential for something new
and unseen is always present.
When we last
commented on the Jan expiry in the SPX our two main themes were the continued
abundance of Y ratio and the potential for a bear squeeze, and the two are not
unconnected of course.
Well, the Y
ratio bandwidth now stands at 310-points, truly amazing, and so a 120-point
move is totally in keeping.
the intraday low yesterday was 2346.58, just where our old friend R3 is
residing, the level that proved so effective on so many occasions in the Dec
Jan is but a couple of days old, but activity is already high, the number of strikes
is one of the largest ever, and in fact we would say it is the highest number
ever, so we rather doubt it is going to get quieter.
Activity Very good
Type: On balance only just bearish
Bizarrely it was the NDX that invented the addition of huge
swathes of strikes, not to mention abnormally large positions.
And lo and behold it hasn’t even arrived at the party let alone
make it to the kitchen.
And just to add to the weirdness here it is, after a colossal
6.16% leap, back in its zone.
It is not so much the fact that there are no R ratios at all
here, but rather the fact that we don’t even see Y2 until so far out, making
the Y1 ratio bandwidth a staggering 1475-points wide.
capacity for the ratios to surprise is in itself surprising, and for the DJX
this is in three main regards.
total lack of any Y ratio, in stark contrast to the SPX.
the SPX’s level of activity was “high” then here it is tremendous.
are back to just the 200-point zone, as this expiry also sees a very full range
of strikes, with a huge amount also added since our last look.