Squawk Morning Briefing: Political Whim

In the very short-term, markets seem to be reacting more to statements from politicians regarding the fiscal cliff than any other factor. Nevertheless, the observations of Elliott waves still prove valid. A move in three-waves based on D. C. gums flapping is still corrective no matter how sharp or how large. And a move in five waves is still in the direction of trend.

There is no denying that politicians have taken over the market this past week (or perhaps traders have abdicated to them) but the wave patterns tell us that the current move upward is unlikely to be complete. How smooth or rocky that road might depend on what elected officials fight about and when. Details are in today’s videos as well as important indications to look for to signal that something else might be occurring.

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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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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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