Is it useful to watch futures when trading stocks?

Discussion in 'Trading' started by whitetanman, Jun 22, 2007.

  1. I watch the futures in the morning to decide whether to get in, and often just end my dat at the end of pre-market. It has been pretty consistant to just watch CNBC and hit a few websites to see what their initial reaction of todays trend will be.

    But once the market opens, I have really no clue. My Fidelity doesn't have futures on it that I can tell.

    So, if I had a futures realtime subscription from a site, would that give me a few minutes, or a minute, or a few seconds heads up on where an equity will be seconds later, or do they go up and down together?
  2. Yes, especially if you are trading stocks in DOW 30, or the heavy wieghts in S&P and NAS
  3. Absolutely!

    Look the futures / fair value ratio, very negative values can give you early warnings of an impendig correction, even before the market opens.

    Once the market opens, futures basically follow the stock/index trend.

    You dont need a suscription to follow futures/fair value, it's freely available in the internet.
  4. Yes, but not full time. You should know what and when to watch, otherwise you'll get another "noise" indicator. Try to distinguish a few pivot moments per day and watch only at these times.