"My interest is in the future because I am going to spend the rest of my life there."
-- Charles F. Kettering
If you have been watching the stock market lately, you are aware that it's been dropping like a hot potato, and demolishing your 401K, if you have one. Who knows what's going to happen next, but it seems like every day, we're hearing more bad news that offsets any good news we're hearing about company earnings or the global economic recovery. How's a body to know what is coming on the morrow?
The Merriman Market Analyst, a weekly report written by a financial astrologer that may provide some keen insights.
However, even more reliable is reviewing futures outside of market hours. Futures are contracts to buy a stock or group of stocks in an index at a predetermined date and price. The purchaser of a futures contract must fill the contract terms, unlike an option which is a right but not an obligation to buy. And futures are bought and sold, even outside of normal trading hours, so they can provide a little hint of what the upcoming trading day may bring at the opening bell.
Some of the futures websites I have been known to review before the market opens at 9:30 am ET are:
Wall Street Journal
These sites track the sale of futures contracts on a more-or-less real time basis, and that usually is what establishes a basis for the trading day.
All of that said, perhaps money in a mattress is the way to go these days. Dow futures are down over 200 points as of 7:30 am ET this morning. We have a nosediving market which has no mercy on small, buy-and-hold investors.
Legal disclaimer: The above hints and comments should not be construed as financial advice.