Archive for the ‘Morning Briefing’ Category
Squawk Morning Briefing: Intermarket Divergences
Once again we see intermarket divergences; this time the S&P 500 making new all-time highs and the Dow Jones Industrials lagging. On Thursday, much (but certainly not all) of the DJIA underperformance can be attributed to IBM’s earnings. Whatever the cause, the DJIA isn’t doing what it needs to in order to confirm […]
Squawk Morning Briefing: Sell The News?
If the typical reaction to major events is to buy the rumor and sell the news then we may be able to attribute the advance from last week’s lows to anticipation of a deal to reopen government and resume borrowing. If so, then selling might be the natural reaction. Elliott wave scenarios would […]
Squawk Morning Briefing: How Much Down?
Tuesday saw U. S. equities retreat from overbought levels so now the question turns to how much further down we’ll see. Overall, the rise from last week’s low appears impulsive so we expect to see any pullback complete above those lows before another leg higher. Exactly how much lower and how much higher […]
Squawk Morning Briefing: Short-Term Overbought
In the short term, U. S. equities appear overbought. However, it remains unclear whether that means anything in a news-driven environment. Certainly it sets up some potential selling if the next news is a disappointment, but it need not be a letdown. The overall shape of the move up continues to be […]
Squawk Morning Briefing: Pullback
You don’t need us to tell you that the futures have pulled back from the Friday’s high. However, the important observation is that the rise from last week’s low appears impulsive and that has us expecting this pullback to be only temporary, leading to at least one more leg higher. If that move […]
Squawk Morning Briefing: How Big a Bounce?
One of our laments throughout most of the DJIA’s decline from September highs is that there hasn’t been a significant bounce which we can use to try to identify the wave structure. We can now dispense with that worry. How high it might go is the next question, and without being able to […]
Squawk Morning Briefing: Euro and Bonds
Yesterday we highlighted the importance of the Voodoo Treeline area for the Euro. Failing to break cleanly through that area would signal that the decline from recent highs was merely corrective, otherwise there would be potential for a larger decline. Wednesday’s action saw the currency find support at that area and it is […]
Squawk Morning Briefing: Watch The Euro Treeline
We’ve paid a lot of attention lately to the situation in U. S. equities which is murky at best. Let’s not lose sight of some of the other markets, because there are some important situation setting up. This morning finds the Euro resting on it’s Voodoo Treeline, which is an important level for […]
Squawk Morning Briefing: Gaining Perspective
The DJIA is getting ever closer to the August lows, but is that really the level we should be watching? Especially with the question marks surrounding the nature of the decline from recent highs it’s useful to step back and establish some perspective about the bigger picture in U. S. equities. That’s what […]
Squawk Morning Briefing: Clue Search Continues
We still need to see more from U. S. equities to have a confident interpretation of the decline from September highs. At this point, what we are doing is updating our possible scenarios each day so that we now what sort of action would be convincing. To help in that effort, today’s DJIA […]