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There Will Be Notable Weakness Before This Week Is Over

Published 08/30/2022, 12:36 PM
Updated 07/09/2023, 06:31 AM
CL
-3.12%
RTYH25
-2.97%
ETH/USD
1.21%

I’ll start by saying that I believe we will resume notable weakness before this week is over. Maybe today. Maybe Friday. Sometime soon.

The core pattern driving this weakness, in my opinion, is the clean series of head-and-shoulders patterns among the intraday charts across important asset classes. Here, for example, is Ethereum futures:

Ethereum 1-Hour Chart.

Here is the S&P 500 Futures:

S&P 500 Futures 1-Hour Chart.

And here is the Russell 2000 futures, which seems quite close to its neckline:

Russell 2000 Futures 1-Hour Chart.

Oh, and thanks a heap, crude oil, for finally starting to tumble after I gave up on my energy shorts yesterday!

Crude Oil 1-Hour Chart.

I presently have 30 bearish positions, all of then January 2023 equity puts that are deep in the money (average extrinsic value only 11%). I will deploy my remaining 16% cash soon.

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