V. 22:7 (42-46): Where Will The Markets Open? by Ihor Vysotskyy
Product Description
Where Will The Markets Open? by Ihor Vysotskyy
Here’s how you can use fair value to determine where the market will open.
Turn on CNBC before the market opens and you will see the S&P futures quotes. How important are they? If you are an experienced trader, you know that the Standard & Poor’s 500 futures contract, which is based on the S&P 500 index, is a valuable forecasting tool. But what exactly is the connection between the S&P 500 index and futures on this index, and how can this connection help define where the market will open?
FUTURES VS. CASH
The S&P 500 is a capitalization-weighted index with an aggregate market value of 500 companies that represent major industries. The S&P 500 futures contract is a commodity contract based on the S&P 500 cash index. It represents the “obligation to deliver” the value of the index on a certain future date (the expiration date).
Here’s how you can use fair value to determine where the market will open.
Turn on CNBC before the market opens and you will see the S&P futures quotes. How important are they? If you are an experienced trader, you know that the Standard & Poor’s 500 futures contract, which is based on the S&P 500 index, is a valuable forecasting tool. But what exactly is the connection between the S&P 500 index and futures on this index, and how can this connection help define where the market will open?
FUTURES VS. CASH
The S&P 500 is a capitalization-weighted index with an aggregate market value of 500 companies that represent major industries. The S&P 500 futures contract is a commodity contract based on the S&P 500 cash index. It represents the “obligation to deliver” the value of the index on a certain future date (the expiration date).
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $299.99! |
| Click Here to Order |