Squawk Morning Briefing: No Campaigning for NFL Replacement Draft

Markets seem to be complacent, comfortable with a notion that a U. S. debt ceiling agreement will be reached.   Otherwise, it is tough to imagine that the moves we’re seeing, both up and down, would be as controlled as they currently are.  Some outlets are reporting that Monday’s sharp spike up in Treasuries was due to a rumor of a Washington D. C. bomb scare, but equity markets barely budged on the rumor.

When investors get too comfortable, the risk of a shock increases.  There are many possible sources of significant news events at the moment that make this a risky environment, especially when there’s little reason to favor either the bullish or bearish camps.

One piece of news failed to move markets much on Monday: NFL players and owners have come to an agreement that will provide fans with the spectacle of pro football this year.   We try to be non-partisan here but would like to make one political observation.   Both players and owners derive their livelihood from competition.   They are rewarded for fighting, yet have reached a compromise.   Yet the representatives we have sent to Washington to govern so far seem unable to do so.

Perhaps with the season secure our politicians can return to their regular job and stop competing for spots as replacement players.   1987 was a disaster for the NFL and they have avoided repeating that mistake.   Let us hope that politicians don’t have to see the end result of continued intransigence before concluding that it’s a bad idea.

As far as markets, we cover them in our regular videos below.

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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:

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