E-Mini S&P500 Futures Volatility Forecast (31/10/2010)

The last week we forecasted an augment in the S&P500 volatility because it touched the bottom and it was improbable that  an ulterior down movement would happen in the market. Well, our forecasts are now reality!!!

The TGARCH volatility plot is now upward sloping and it would not be surprising to see readings about 2% – 2.5%. Even if this market appears really strong under a technical point of view the staff of HyperVolatility again suggests that the current condition is a favourable opportunity to go short.

Therefore, we again advise you to close out your long positions and walk away (if you are risk -averse) but that would be the 2nd best solution because the first answer to such a volatility forecast would be an heavy selling.

Likewise, the question that we ask you is the same one that we proposed the last week: HOW LOW CAN THE VOLATILITY GET ???

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