The best-formed pattern (and pretty much the only decent pattern) on the equity futures right now is the Russell 2000, which has an exceptional head and shoulders top. I am tempted to short this sucker, but it seems like a Siren song to me. In other words, almost too good to be true, and luring me in to trap me. That’s a silly thought, perhaps, because this is honestly a fantastic pattern.
Stepping way back onto a weekly scale, we can see that if the H&S does complete, the logical move is to the lower end of its multi-year range.
I would also add that bonds look EXTREMELY precarious, even though they are deep into the 4th year (!!!!!!!!!!) of their own bear market. Good Lord, can you imagine STOCKS being in a bear market for 4 solid years? That would be glorious! Anyway, bonds look deliciously terrifying.
It’s all up to that Bozo Powell, of course, which does his little theatre piece again tomorrow. He gets eight performances of his improv comedy per year, and tomorrow he’ll lie through his teeth and assure us he does what he does for the common man and not his scumbag Wall Street buddies. Honest. He’s for-real serious.
The sad thing is that most people will believe him. Actually, that’s not true. Most people don’t even know who he is or what he does, and they just go about their lives eating cheeseburgers and binging on Netflix. And then there’s us.
