German Bund Futures Volatility Forecast (31/10/2010)

The volatility experienced by the German Bund is now back to normal after the large expansion which  came with an heavy selling pressure.

At this point,  there are 2 scenarios that can be taken into account:

1) An additional drop of the market

2) A sharp rally of the price

According to what happened recently we should see a bounce of the price around the 133 – 134 euros area but the NonFarm Unemployment and the interest rates announcements expected this week could completely twist the market.

If the volatility remains stable at this level even during this week it is highly probable that the downward correction is over and that bulls are willing to get back but the staff of HyperVolatility suggests to buy back your shorts because a rally could easily wipe out your positions.

2 Responses to German Bund Futures Volatility Forecast (31/10/2010)

  1. Wow!! I love what you are doing! I need to relook at screen toaster! Informative and interesting post!!!keep it up..

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