Squawk Morning Briefing: On The Road Again

Kevin is traveling this week. His videos for today were produced Monday evening. Kevin has the ability to produce his videos while on the road and David will fill in when needed.

There isn’t much on the news docket for Tuesday. We often spend some time highlighting news events that can move markets and there have been a few overnight:

• German exports were higher than expected;
• Chinese trade surplus also beat expectations but it can mainly on import weakness not export strength; and
• French factory output dropped.

These are all being covered in the financial press.   Getting less attention is a continued rise in Italian ans Spanish bond yields.  Not much attention is paid as the yields creep up but once they start reaching over 6% and (gasp) 7% it is often reported as a crisis.   Spain’s 10-year bond is now trading with a 5.83% yield and Italy’s yield is also creeping up, currently at 5.60%.

We continue to see a situation where technicals are deteriorating.  An oversold bounce could save markets temporarily if it materializes and gathers enough steam.  But more selling could put a nail in the coffin of this market for the intermediate term.  This is a time to pay close attention to all the clues as outlined in our videos.

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Elliott Squawk delivers thorough market preparation every morning in time to take action during the trading day. By combining up-to-the-minute futures activity with traditional end-of-day analysis from cash indices, you receive analysis based on the latest conditions as the trading day sets to open. Each issue of Elliott Squawk goes beyond traditional Elliott Wave analysis because we recognize that trading Elliott Waves is much more than just looking at the most likely current count. Squawk will prepare traders to assess the market action as it unfolds by answering questions that any Elliott Wave trader should consider:

• What price levels and wave motions would confirm an expected move?
• What price levels would make an alternate scenario more likely?
• What technical indicators should be watched throughout the day to interpret wave action?
• What intermarket movements merit special attention to understand likely price trends?

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Each day Elliott Squawk will update the outlook for the following markets:

• The Dow Jones Industrial Average
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• U.S. Treasury bond futures

From time-to-time when circumstances warrant, Squawk will present analyses of other markets that help interpret wave action in a covered market. For example:

• If S&P 500 and Dow counts are ambiguous and NASDAQ behavior helps identify the likely next move then NASDAQ analysis will be presented.
• If the EUR/USD count is ambiguous and the USD/CHF cross helps us to understand what might happen then we’ll present the intermarket analysis the Squawk subscribers.

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About the Analysts

Kevin McEwen and David Starr are best known to First Wave chat room participants as Kevy99 and Managematics and by their reputation for their Elliott Wave counts that have predicted market turning points. Kevin has been counting Elliott Waves for 28 years, successfully forecasting market moves in virtually every financial environment. David brings together talents in financial market analysis and software development to his wave counting. He has authored many of the studies used by First Wave Traders as well as a number of proprietary studies to aid in counting waves.

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