Squawk Evening Update: Time to Head Down?

Today was the reward for a consistent application of the analytical techniques we find generally reliable.  Just as not every trade can be a winner, not every forecast will come true.  So just as we say trade well and the rest will follow, we take the same attitude toward our analysis.  We focus on the quality of our coverage rather than whether any one call is good or bad.  This truly is our attitude, but somehow it always seems to ring hollow on days when few forecast events come to pass.

In any case, the high on the Dow was 10.650.01 within a point or two of several of our measured targets.  Without being in front of trading computers today it’s hard to tell whether there were clues that would allow entry at the target but it seems like there were two good retraces right up to the FibGrid snow line.  that could have given good short entries.  Hopefully some of you had good trades.  Our next task is to assess whether more downside is ahead and this will be our focus for equity market analysis over the weekend.

The Euro also performed to our expectations, continuing to decline further after our morning briefing was published.  It’s nice that the market cooperated when we were so bold as to forecast the EU currency’s fall in the title of our briefing.  If you weren’t up at 2am EDT you might have missed the entry for this trade.  This weekend we will be focusing on things to look for that confirm the move down and how to look for the end of a first retracement for entry.

We’ll also scour the markets we cover to see what other interesting opportunities we see.  Again, we’re sorry for the brevity of this morning’s update.  We hope that the quality analysis makes up for the lack of quantity.

Thank you again for reading the Elliott Squawk.  Have a great weekend!