Squawk Morning Briefing: The Battle of The New Year

As 2012 wraps up we have a battle shaping up: the battle between low liquidity holiday disinterest and the pressing matter of the fiscal cliff. As we point out again today in our DJIA video, the index has still failed to reach confirmation that would dramatically increase our confidence that a downturn has begun. Nevertheless, there are many reasons to look for a bearish resolution to the current situation. Maintaining that interpretation requires that the indices continue to look impulsive to the downside.

Whenever taking an opinion on market direction prior to confirmation we need to insist on this kind of action. It is possible that the fiscal cliff delivers that kind of action, but even the bearish interpretations would allow for a bounce here as discussed in or videos. But any rise beyond the parameters we’ve discussed would be more of a warning.

On the eve of the new year we want to sincerely thank you for following our analysis in 2012 and look forward to providing the same thoughtful, rigorous commentary in 2013.

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

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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:

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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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