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DJ EuroStoxx50 Futures Volatility Forecast (14/03/2011)

The Index is now really volatile and the TGARCH plot is clearly showing a curve which is sharply upward sloping. The European Index dropped in the 2,880 area and there are no, at least at the moment, evident signs of a recovery.

The market is going through a retracement period and we strongly believe that even this week is going to be quite bearish because the concerns about Japan’s recovery and Japans’ oil demand are going to push prices even lower than what a systematic retracement would normally do.

The volatility is probably going to touch 1.6% (25.3% annualised) whilst DJ EuroStoxx50 futures will plummet and touch 2,820 points by the end of the week.

The staff oh HyperVolatility is extremely bearish and we will try to place some shorts in order to profit from such a falling market.

There could even be some attempts to bring the price back up again but even the most optimist buyer, after the natural disaster which hit Japan, is now reconsidering its view of the market.

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