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Markets To Open Lower Trading Below Fair Value

I always laugh when I watch CNBC and listen to host Mark Haines struggle with understanding what it means when the futures are trading at a discount to fair value, for some people this is a left brain thing.  But it's pretty simple, and the thing missing is  1.) The futures market is open and trading  2.) The NYSE/NASDAQ is not open...pretty fricking simple as the futures are trading below where the markets closed the previous night so when NYSE/NASDAQ opens they will get back in line.  I know...I used to arbitrage this so it got back into line...which is a discussion for another day.  I like Mark because he has been there since I started watching and he is the Lou Gehrig of the Buisness Host, but I've never heard him explain it in simple terms.

Today the Dow will open around 150 points lower based on where the futures are trading.  The question becomes this?  Does it trade lower from here?  Or is it a value opening lower?  Based on the current patterns, the market is heavy and has more watch any long side purchases as negative news from CNBC pressures the whole market.

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