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DJ EuroStoxx50 Futures Volatility Forecast (13/12/2010)

The last week we forecasted a movement of the DJ EuroStoxx50 futures prices around the 2850 area and the price hit 2854 on Friday!!!

The volatility dropped to 1.2% (19% annualised) as forecasted whilst the TGARCH plot is displaying a curve which is downward sloping and therefore highlighting an ulterior decrease of volatility which is going to push prices higher.

This week the DJ EuroStoxx50 futures should head north again and the price is likely to hit its highest value for the year at 2900 by the end of the week whilst volatility should drop to 1% (15.8% annualised).

The price should not move violently and therefore a calm and gradual rise is more likely to happen. The staff of HyperVolatility advises you to keep your long positions going because a retracement of the market should not occur this week.

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