Pre-Market Trading

[imoldernu]

Something I really don't understand... Can you help explain or lead to a simple explanation. This is 10/24, after the market closed. I looked for "pre-market trading, and found the Dow Futures showing "down " 622 at 6PM ET. .

When I look at the morning market opening on TV, it shows "Implied Open" , but very often, within the first few minutes, that number can change by hundreds of points..

I don't need to know for investment purposes, but this has always bothered me. What's happening?

 

[NYEXPAT]

Its a moving target. Company earnings releases, Asian then European markets opening ahead of US, treasury mkts, employment data and least we not forget "TWEETS" from our glorious Commander in Chief!

 

[NW-Bound]

... When I look at the morning market opening on TV, it shows "Implied Open" , but very often, within the first few minutes, that number can change by hundreds of points...

Investors running to and fro; they don't know if it is comin' or goin'.

Buy, buy, buy... No, it's sell, sell, sell....

 

[COcheesehead]

They are super volatile and only indicate the opening.

 

[aja8888]

Its a moving target. Company earnings releases, Asian then European markets opening ahead of US, treasury mkts, employment data and least we not forget "TWEETS" from our glorious Commander in Chief!

And Tweets from our illustrious Elon...

 

[audreyh1]

The DOW futures currently say there would be over 100 point rise if the market opened right now.

But it’s very ephemeral. Futures swing widely overnight.

And when the market does open, it might open near where the futures indicate, but I’ve seen huge changes in a few minutes including complete reversals.

So overall it doesn’t really mean that much.

 

[imoldernu]

This is the site that I looked at showing (at the time) down 622. The numbers are continuously changing.

https://money.cnn.com/data/premarket/

Will be interesting to see what happens overnight and then an hour after the market opens.

 

[NYEXPAT]

The DOW futures currently say there would be over 100 point rise if the market opened right now.

But it’s very ephemeral. Futures swing widely overnight.

And when the market does open, it might open near where the futures indicate, but I’ve seen huge changes in a few minutes including complete reversals.

So overall it doesn’t really mean that much.

I do not look at the futures until China opens up. Typically the last thing I do at night. I find thinking about the next day's trades is like counting sheep!

 

[imoldernu]

Yeah... it's an hour later, and that futures loss of 622 is now a gain of 68.

I did read the explanation on CNN, but it was in a language I didn't understand.

 

[audreyh1]

This is the site that I looked at showing (at the time) down 622. The numbers are continuously changing.

https://money.cnn.com/data/premarket/

Will be interesting to see what happens overnight and then an hour after the market opens.

My CNBC app was showing position +46 on DOW that corresponded to a +100 point gain from todays close.

Try this view:https://www.cnbc.com/pre-markets/

DOW
Index Close: 24583.42
Current Futures: 24693.0
Change: +77.00 (and rising)
but as you can see that change is not from the current close, but rather from what the futures were when the market closed. A little more complex. So, instead just look at the "Current Futures" number and that indicates where the market would open immediately, up 110 points.

That CNN down 622 is not right.

 

[imoldernu]

That CNN down 622 is not right.

Yeah.... I just checked the CNN site and it's close to your number. There must be some interim period after the market close, when there's some kind of carryover from the day... All of the futures were down the same relative amount (Nasdaq etc.) The posted time when the big number showed was 6:02 ET.

The big number was what prompted my question.

Maybe some day, I'll get up the courage to invest.

 

[audreyh1]

Yeah.... I just checked the CNN site and it's close to your number. There must be some interim period after the market close, when there's some kind of carryover from the day... All of the futures were down the same relative amount (Nasdaq etc.) The posted time when the big number showed was 6:02 ET.

The big number was what prompted my question.

Maybe some day, I'll get up the courage to invest.

6pm ET is when Dow futures start trading on weeknights - the nights before the market opens, so Sunday through Thursday

Trading in the different Dow futures contracts starts at 6 p.m. eastern time on Sunday evening. Trading closes at 4:15 pm on Friday. During the week, the futures markets close for 15 minutes at 4:15 -- 15 minutes after the stock market closes -- and for 30 minutes at 5:30. The daily trading session runs from 6 p.m. the day before -- starting Sunday through Thursday -- through 4:15 pm the next afternoon. Note that the CME Group, which owns the electronic futures exchange, has its headquarters in Chicago and often posts market times using the central time zone.

https://finance.zacks.com/dow-futures-posted-over-weekend-3225.html

 

[NW-Bound]

This is the site that I looked at showing (at the time) down 622. The numbers are continuously changing.

https://money.cnn.com/data/premarket/

Will be interesting to see what happens overnight and then an hour after the market opens.

I found it curious that you are interested in the market movement while having no money in it.

But then, I remember that I got interested in how Tesla is doing, and I have no money at stake there either.

Just another spectator sport, I guess.

 

[ERD50]

I found it curious that you are interested in the market movement while having no money in it.

But then, I remember that I got interested in how Tesla is doing, and I have no money at stake there either.

Just another spectator sport, I guess.

I can understand being interested in the market (or Tesla). But to make the leap to analyzing pre-market noise? That's an odd leap.

To me that's like saying "Tell me how a car engine works, I know almost nothing about them", and jumping into how they design direct fuel injectors, or describing the intricte details of variable valve timing.

imoldernu - the market goes up, and down, and sideways. Over the long run, mostly up.

-ERD50

 

[Mr. Tightwad]

I'm glad to see how often you two think about Tesla..it warms my heart

 

[NW-Bound]

When the CEO tweets so much and dominates the Internet headlines and calls a lot of people names, how could you help being curious?

I never cared about the Tesla Model S until people raved about it on this forum. And then, this autopilot thing that drove the car under a semi-trailer. My only personal exposure with Tesla was many years ago, when they brought an original Roadster to megacorp to display it.

I guess getting interested about Tesla, and particularly Musk, is still better than following the news about Kardashian, and then the British Royal family recently. All these people are all over the Web.

If it weren't for the Web, I would not know or care if Musk married Kardashian or some earth-shaking thing like that.

 

[Mr. Tightwad]

Proud to say I know nothing about Kardashians and less about British Royalty.

 

[NW-Bound]

Don't know much about these people either, but I have seen plenty of their photos on the Web.

Never click to read the articles, but after being bombarded with their photos, I do recognize their faces and names after a while. It's impossible not to, unless I become senile.