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DJ EuroStoxx50 Futures Volatility Forecast (01/02/2011)

The last week we suggested you to remain long and our forecasts were right until the last Thursday where the price achieved 3,004 points before sharply and unexpectedly drop to 2,941 on Friday.

The volatility curve is now at 0.8% (12.6% annualised) and the TGARCH plot is clearly heading south meaning that the volatility could touch 0.65% (10.3% annualised) which is the lowest value ever achieved by the DJ EuroStoxx50 futures over the last 5 months.

The European index should rise again towards the 2,990 points by the end of the week and stabilise in that area for a while unless better or worse than expected news coming from the US are going to change the situation.

The staff of HyperVolatility is moderately bullish on DJ EuroStoxx50 futures and advises you to keep your long positions going since higher returns should be earned in the upcoming days.

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