E-Mini Nasdaq Futures Volatility Forecast (27/02/2011)

The last week we saw a very fast retracement!!! However, such a drop did not really surprise our readers because in our previous week’s forecast we warned everyone against an imminent drop of the market despite its bullish outlook.

As soon as the market opened at 2,368.5 we entered a short position which has been closed on Thursday at 2390.5 because the volatility began to drop and it was clear that the down movement was running out of steam.

The actual volatility is 1.2% (19% in annual terms) and it is evident that the curve will tend to head south in the upcoming days favouring an ulterior recovery of the price which could achieve the 2,380 area by the end of the week.

The staff of HyperVolatility remains bullish on E-Mini Nasdaq futures but the week ahead is full of macroeconomics data that could alter the situation, hence, we will strictly monitor our positions.

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