Periods of low volatility are usually followed by higher-than-normal volatility, which reflect large market moves. The best way to identify these extreme low-volatility periods is to compare a shorter-term volatility reading with a longer-term volatility reading.

The following futures have short-term (10-day) volatility readings half or less than their long-term (100-day) readings. As a result, these futures are poised to make large moves within the next few days. You can find more information on volatility trading techniques in the book Connors on Advanced Trading Strategies by Larry Connors.

Reminder: We are in no way recommending the purchase or short sale of these futures markets. Trading should be based on your own understanding of market conditions, price patterns and risk; our information is designed to contribute to your understanding. Controlling risk through the use of protective stops is critical.