Squawk Morning Briefing: In Other News…

It is safe to say that the market remains captive to news.  It remains to be seen whether we will have any short-term news about the crises in Greece and Spain; new “technocratic” leaders in each country are merely getting started in there attempt to address an intractable problem.   If news about the crises subsides then attention may shift to economic data.   The EMU reported weak industrial production numbers overnight and The U. S. is set to report its production figures on Wednesday.  That, combined with regional Fed manufacturing surveys out of NY and Philly will give us an idea whether we have been producing anything while Greece and Rome have been burning.   Based on the numbers, it seems like the Europeans haven’t been.

One of the reasons we continue to be intently focused on the news, despite our reliance on technical analysis, is that the news events often end up initiating the movement of markets.   Then we have to rely on our technical analysis to determine which of those movements establish a change in trend.  We cannot conclusively call an end to the uptrend which began on October 4th, but everything continues to suggest that we will turn down before overtaking August highs.  Each additional movement in the market adds more information for us to analyze and more clues about direction.  So we will watch the news for indications of when we might see additional movement that could ultimately reveal our anticipated change in trend.

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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:

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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.
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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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