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To: Signalman

Do you have any idea how those Futures charts are supposed to be interpreted?

It shows the Dow down 117, but the level it quotes corresponding to that 117 is nearly 200 points below Friday’s close.

I’ve been trying to make sense of those things for several years now, and having no luck.


5 posted on 05/06/2012 7:04:39 PM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: DuncanWaring

Re: Interpreting Dow Futures

thanks for asking — I’d like to know too.

It has been down -182 all day and then in the last hour or so is down -123 but it does not add up to Friday’s close like you say.

The Euro trading at 129. Down 3 today.


8 posted on 05/06/2012 7:10:34 PM PDT by bunster
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To: DuncanWaring

The key to understanding the difference, if you are so inclined, is to google “djia futures fair value” and poke around a little. The price of the futures contract, which is what you are seeing now, can vary from “fair value” in either direction. That price takes into account not just the prices of the stocks, but dividends and how much time remains in the contract.

I don’t think the average investor really needs to care about the difference (I don’t) — it’s for the big money guys who run the computer buy and sell programs.


12 posted on 05/06/2012 7:18:42 PM PDT by jiggyboy (Ten percent of poll respondents are either lying or insane)
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