The derivatives market is driving the equity markets, says Richard Jones, MD for Hedge Ratio Analysis, as he joins today’s Tip TV Finance show, to share insights on key market indices – S&P 500, Dow Jones, Nasdaq, FTSE 100 and the DAX, using hedge ratio analysis.
Key Points:
S&P 500, DJIA, Nasdaq
DJIA stuck at 17800, 100 point range on the either side
People don’t realize how big the December expiry is, a full year amassed into one
Expecting markets to pullback across the board in December, can’t see DJIA reaching 18,100
16th December: Would expect the market to around neutral levels
Far more movement ahead in the S&P 500 than the Dow Jones
FTSE, DAX
FTSE 100: now coming to life, more upside above 6550
DAX: A nightmare, for the first time in year the hedge ratios are not catapulting
December expiry: Looking at 6500 for the FTSE 100 and 11,000 for DAX
FTSE 100 is below neutral zone while all other markets are above neutral zone, hence has the most to gain.