Squawk Morning Briefing: Flight Delayed

A few years back a 70s pop star was on the radio talking about what it was like to still be touring and performing. He said, to paraphrase, that he wasn’t being paid to perform but rather to wait around in airports. Likewise, it is said that traders are paid to wait. Of course the thing we wait for is a trend and the market has been stingy handing out trends for the past few weeks. Surely it is a frustrating time.

While today’s BLS report may be the catalyst for some movement, markets have yet to signal that they are leaving chop and entering trend so it may remain a good time to continue watching. Furthermore, if the trend continues with a push to the upside we are warned that its potential may be limited. Since it would be a trend move, it may look impressive compared to the short-term chop we’ve been seeing, but if it is an expected fifth wave then it would lead to downside after. That would make it a move for nimble players.

Corrections are designed to fool us. The best way to avoid being a dupe is to wait for a clear sign that the waiting period is over even when we’d prefer being on stage to sitting in an airport.

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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?
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• What intermarket movements merit special attention to understand likely price trends?

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