As we head into the last day of the series tomorrow, I want to first take the opportunity to thank all of you for your inputs and the comments and the many emails you have sent for the contest.
Honestly, the volume of mail has been so much that it will not be possible to declare the winner, right after the close.I will go through all the mails after the close tomorrow and we will have a winner, as the prize goes to the closest prediction and not the exact one.
So on Saturday, one person will have in their inbox a welcome kit to Vtrender Live.
You still have time until tomorrow 12.00 noon to enter the contest or to change your entry.
Those of you who have sent me a range, let me remind you that I asked you to call out the series close and not a range. Please refine your entries to a figure, though I’ll accept a range of 5 points.
We had an inside day in the markets today, with most of the auction in the volume value area of yesterday.Such days tend to give violent breakouts and a break of value confirmed by a break of the previous day’s range is the best way to trade the day tomorrow.
The Vix formula which we employ at Vtrender gives a range of 5022-4860 in the futures for tomorrow, assuming that the vix remains stable for tomorrow and does not jump up and down 10-20 %.
Those who want to look up the calculation can check a post we did on the subject back in March 2010.
There’s another simpler way of calculating the day range. This you do by taking the vix and dividing it by 20 and multiplying it to the previous day’s close which is further divided by 100.
So you get 32 of the vix divided by 20 which is 1.6, times 4941/ 100 gives us 79 points as the day’s movement tomorrow. If vix increases during the day, the range increases.
So within that 5022- 4860, today’s profile should put the range to 4961-4880.
But as I said in my post yesterday and as was pointed in the comments section by one of our readers, we are living in times of great disconnect between sessions. So it’s best to trade prices off the screen and let the arithmetic of the markets take a back seat.
But for one of you it will do well if you do all these calculations and come close to the expiry figure.
One month of Vtrender Live is the prize.
Winner awaited.
My best wishes….
