E-Mini Nasdaq Futures Volatility Forecast (13/11/2010)

HyperVolatility was right again !!! In fact, the TGARCH clearly shows that the volatility in the market started to increase even if it is still remarkably low 1% (16% annualised).     The E-Mini Nasdaq fell to 2134 in the last 2 days after a very bearish week which began with prices fluctuating around the 2184 area and we think that things could get worse as we approach the end of the 2010.

We are still bearish on the E-Mini Nasdaq because the volatility should rise to 1.6% -1.8% (25% -28% annualised) bringing down prices to 1850. Furthermore, the Nasdaq should be an extremely volatile markets because of the nature of its components but this is not happening and it is an ulterior sign of warning.

HyperVolatility suggests you to get out of long positions (if you still have any) and start looking towards the short side of the market.

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