A local Metro Detroit news station reports the stock futures right around 5:11 am every weekday and if the arrows happen to be red at that time, the Anchor states that the markets will open lower. If the arrows are green, the Anchor says they will all open to the upside. At 5:11 am EST, there is more than 4 hours of futures trading activity before the opening bell and that’s time enough for the futures to go from red arrows at 5:11 am to green arrows by 9:30. Am I right or does this local news station not have it’s facts straight?
He is just saying where the overnight futures market is at the time. It does change before the market opens at 9:30 est. I have seen it move a lot. Especially if a report like jobs or GDP is announced before the market opens. So, if he is implying he knows where the market will open, he is wrong. But he is rightly saying where the market is at that time. One other thing to note. The overnight markets have low volume and is swayed by European markets. However, after 9:30 est, the volume goes way up. So these new traders have far more impact (more money and more trades) than the few overnight traders.
Nah, you read it right. The Anchor states as though it is a given that the three major indices “will” open one way or the other based on what the futures look like (all green or all red) 4+ hours before the opening bell. It’s not just them saying what their bests guesses are.