How Futures Work as Market Indicators

[] A Layman's Guide to Understanding Global Market Movements [] [] [] [] When people talk about futures in the stock market, it can sound confusing and technical. But, at a high level, futures are actually one of the simplest ways to understand what might happen next in the market. Today I’m explaining exactly how futures work and why they’re an important tool for traders to predict market movements. What Are Futures? Futures are contracts between buyers and sellers that lock in a price today for something to be delivered later. You may have heard of commodity futures for things like wheat, oil, or corn, where producers and buyers agree on a set price for delivery months down the line. But futures aren’t just for goods — they’re also for financial indexes like the S&P 500. Index futures are a way for traders to bet on where the stock market is heading, even after regular trading hours are over. Why Are Futures Important? Here’s the key: while the S&P 500 or the Dow Jones Index might stop calculating at the end of the trading day (i.e. 4pm Eastern), futures keep going. This is important because global markets are constantly moving, especially when major economies like Europe and Asia are awake while we’re sleeping here in the U.S. Let’s say the European markets tank overnight. By the time we wake up, the futures for U.S. indexes will have already dropped, reflecting the bad news from Europe. So even though the S&P 500 might not have opened yet, futures would give us an early warning. Futures: Your Early Indicator Think of futures as a sneak preview. Instead of waiting until 9:30am Eastern for the U.S. markets to open, futures give you a sense of what’s likely to happen. Are futures pointing up? Chances are the market will open higher. Are they pointing down? You might brace for a lower open. Futures don’t tell the whole story, but they give traders a snapshot of market sentiment — the general mood of traders — before the official market opens. In tomorrow’s article, we’ll explore how futures help bridge the gap between different global markets and the U.S. stock market. — Geof Smith P.S. With gold making a major move, you don’t want to jump in just yet. [Check out this special session]( where I’ll show you how to tap into this breakout with my Perfect Gold Trade strategy to target gains from this supercycle without holding physical gold. [] [] When people talk about futures in the stock market, it can sound confusing and technical. But, at a high level, futures are actually one of the simplest ways to understand what might happen next in the market. Today I’m explaining exactly how futures work and why they’re an important tool for traders to predict market movements. What Are Futures? Futures are contracts between buyers and sellers that lock in a price today for something to be delivered later. You may have heard of commodity futures for things like wheat, oil, or corn, where producers and buyers agree on a set price for delivery months down the line. But futures aren’t just for goods — they’re also for financial indexes like the S&P 500. Index futures are a way for traders to bet on where the stock market is heading, even after regular trading hours are over. Why Are Futures Important? Here’s the key: while the S&P 500 or the Dow Jones Index might stop calculating at the end of the trading day (i.e. 4pm Eastern), futures keep going. This is important because global markets are constantly moving, especially when major economies like Europe and Asia are awake while we’re sleeping here in the U.S. Let’s say the European markets tank overnight. By the time we wake up, the futures for U.S. indexes will have already dropped, reflecting the bad news from Europe. So even though the S&P 500 might not have opened yet, futures would give us an early warning. Futures: Your Early Indicator Think of futures as a sneak preview. Instead of waiting until 9:30am Eastern for the U.S. markets to open, futures give you a sense of what’s likely to happen. Are futures pointing up? Chances are the market will open higher. Are they pointing down? You might brace for a lower open. Futures don’t tell the whole story, but they give traders a snapshot of market sentiment — the general mood of traders — before the official market opens. In tomorrow’s article, we’ll explore how futures help bridge the gap between different global markets and the U.S. stock market. — Geof Smith P.S. With gold making a major move, you don’t want to jump in just yet. [Check out this special session]( where I’ll show you how to tap into this breakout with my Perfect Gold Trade strategy to target gains from this supercycle without holding physical gold. [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub](