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E-Mini S&P500 Futures Volatility Forecast (23/01/2011)

The down movement has been correctly forecasted the last week although the magnitude seemed to be much larger than what actually thought. Furthermore, we predicted an augment in volatility which was expected to achieve 0.8% and the right hand side of the TGARCH plot clearly confirms that the staff of HyperVolatility was right once again.

The volatility curve is now at 0.9% (14.2% annualised) but the plot is downward oriented and therefore it is likely that the next trading days will be less volatile whilst the price should rise again.

The E-Mini S&P500 futures are going to head north during this week and it is reasonable to believe that the 1.290 points area will be achieved again by Friday accompanied by a volatility drop that should touch 0.3% (4.7% annualised).

The staff of HyperVolatility suggests you to look for long opportunities and wait for the Index to rise although maximum caution and attention will be needed on Thursday because the scenario could drastically change in a few hours if the news are not going to meet investors and analysts’ expectations.

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