E-Mini Nasdaq Futures Volatility Forecast (19/12/2010)

The E-Mini Nasdaq futures went through a quite choppy week which saw prices dropping to 2,203 before jumping back to 2,220 whilst the volatility went from 0.7% (11.1% annualised) to 0.95% (15% annualised).

The E-Mini Nasdaq did not manage to break through 2,220 meaning that the market does not have the strength to do so and investors are more willing to sell long positions and bank their profits.

The volatility should augment and touch 1% (15.8% annualised) and prices are likely to continue in the downtrend touching 2,100 probably before Friday. The staff of HyperVolatility the last week suggested you not to sell your longs because we were waiting for the very last rally but since the market did not manage to explode we now recommend you to close all your positions or taking advantage of the current situation shorting some futures in the short term.

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