DJ EuroStoxx50 Futures Volatility Forecast (28/11/2010)

Once again HyperVolatility managed to forecast quite accurately the DJ EuroStoxx movements. The downtrend has now reached its “top” and it appears that a sideways week is ahead of us.

The volatility is around 1.8% (28.5% annualised) and it is quite probable that the index will go through a narrow trading range during the next week. This is a great opportunity to bank your profits and buy back your long positions.

The TGARCH volatility should get back to 0.9% – 1% (14% – 15% annualised) whilst the price should remain almost stable in the range 2700 – 2750. The staff of HyperVolatility advises you to remain flat this week or to trade intra-day.

Nevertheless, this week particular caution is needed because the Non-Farm Payroll, Jobless claim and Bernanke’s speech are powerful market movers and slightly better than expected news could drive the price back up to 2800.

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