The Future Ain't What It Used To Be

[Nightcap]

I have a stoopid question.

Yesterday, the S&P 500 closed at 2477.83. This morning just before market open, S&P Futures were listed at +6.00, to 2479.50.

When I learned arithmetic, 2477+6=2483. There's clearly some higher order of math going on here, or a fundamental lack of understanding about what Futures are.

Can anyone enlighten me?

 

[cathy63]

Not an expert, but I think you may be adding +6 to the wrong thing. Find the value of "S&P 500 Futures" at the market close yesterday and add +6 to that.

 

[joylesshusband]

When I learned arithmetic...

Yeah.
Did they teach back then to add apples to orange peels?

 

[Red Badger]

I have a stoopid question.

Yesterday, the S&P 500 closed at 2477.83. This morning just before market open, S&P Futures were listed at +6.00, to 2479.50.

When I learned arithmetic, 2477+6=2483. There's clearly some higher order of math going on here, or a fundamental lack of understanding about what Futures are.

Can anyone enlighten me?

When stock flirt with exorbitant CAPE values, the higher order math kicks in.

 

[Nightcap]

Yeah.
Did they teach back then to add apples to orange peels?

Thank you for taking the time to respond to what is an admittedly stupid question. Am I to take your gnomic answer to mean that there is no connection between S&P Futures and the S&P itself - that the Futures value at the start of the trading day has no relation to how the S&P itself will trade?

 

[Nemo2]

Thank you for taking the time to respond to what is an admittedly stupid question. Am I to take your gnomic answer to mean that there is no connection between S&P Futures and the S&P itself - that the Futures value at the start of the trading day has no relation to how the S&P itself will trade?

https://www.thestreet.com/story/120...rstanding-of-fair-value-vs-futures-price.html

 

[Nightcap]

https://www.thestreet.com/story/120...rstanding-of-fair-value-vs-futures-price.html

Dawn breaks on Marblehead. If I understand correctly, when I look at the S&P Futures price at 6:00 a.m., it is the price people are willing to sell the right to buy (or sell) the S&P 500 in September. It's not about today's trading, it's about what the seller (or buyer) thinks will happen between today and September. Is that right?

There's a reason the bulk of my half-vast fortune is in no-brainer Vanguard funds...

 

[Nemo2]

it's about what the seller (or buyer) thinks will happen

I think much is based on 'perception'; whether said perception is accurate or inaccurate is a whole 'nother issue.