How do US Index futures derive value if underlying index is closed overnight?

Discussion in 'Index Futures' started by traderday321, Mar 29, 2024.

  1. schizo

    schizo

    C'mon, you knew exactly what I was after (and this ain't it). :)
     
    #11     Mar 29, 2024
    wartrace likes this.
  2. wartrace

    wartrace

    I apologize if I offended. Someone else asked if you had been drinking and I just suggested the supplement in case you drink. I am afraid I am too stupid to know exactly what you were after. :D
     
    #12     Mar 29, 2024
  3. SunTrader

    SunTrader

    As simple as "Money never sleeps".

    If you are too young to get it , google it.
     
    #13     Mar 29, 2024
    traderday321 and jys78 like this.
  4. mervyn

    mervyn

    Overnight news and events mostly, money never sleeps, Asian and European traders are determining the price, they are equally smart and active.
     
    #14     Mar 29, 2024
    traderday321 likes this.
  5. Businessman

    Businessman

    They trade based on supply and demand.

    However if the overnight futures didnt trade, there would still be some sort of gap open most days in the cash index.

    So the overnight futures are the markets best estimate at any time on what the opening gap in the cash market will be.
     
    #15     Mar 31, 2024
  6. SunTrader

    SunTrader

    Indexes also gap most days ... because not all the constituent parts are open exactly at 9:30am for various reasons.
     
    #16     Mar 31, 2024
  7. Yes... and based mostly upon the reaction to "overnight news/developments" which in the minds of players might affect price. That is... some positive news overnight from anywhere, and the futures likely to bid up.. vice versa for negative news.... Japan, China, Europe raised/cut rates... loosened/tightened reserves... money-pumped into their system, etc. And of course AH reaction to earnings reports/guidance from important companies.
     
    Last edited: Mar 31, 2024
    #17     Mar 31, 2024
  8. A proprietary blend of expectations, hopes, dreams, fears, shits & giggles.
     
    Last edited: Apr 1, 2024
    #18     Apr 1, 2024
  9. schizo

    schizo

    As you might already know, I only follow what I see on the chart. Nothing else matters. Everything else is like you say: proprietary shit.
     
    #19     Apr 1, 2024
  10. Overnight

    Overnight

    It is called speculating. It is why stocks open gap up or down at the Wall street bell in NY every trading day at 0930 hours ET.
     
    #20     Apr 1, 2024