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PR Newswire
11-01-2013, 06:02 PM
So many pessimists .
Top market-timer Demark: "Capitulation" selloff could bottom soon
The Standard & Poor's 500 Index may drop as low as 1,076 before investor panic abates and stocks rally, according to Tom DeMark, the creator of indicators for identifying turning points in securities.
The benchmark index for U.S. equities may fall that far intraday as early as next week and then gain as much as 20 percent, DeMark said in a telephone interview from Phoenix today.
The swings will push the VIX, as the Chicago Board Options Exchange Volatility Index is known, above the high of 48 it reached on Aug. 8, he said.
"We're trying to identify when selling capitulation is about to be completed," said DeMark, the founder of Market Studies LLC. "We're trying to identify the inflection point on the downside when the last seller sold. It could come as early as next Thursday."
While markets are driven by the economy, prices move in patterns and traders can use them to identify when to buy and sell, according to DeMark, who has spent more than 40 years developing indicators with names like "sequential" and "countdown."
An adviser to Steven A. Cohen's SAC Capital Advisors LP, he provided consulting to hedge funds including George Soros's Soros Fund Management LLC and Leon Cooperman's Omega Advisors Inc., according to the Market Studies website.
DeMark said during an interview in January that U.S. stocks were within weeks of "a significant market top." The S&P 500 sank 1 percent the next day, the most in two months. It then rose 4.8 percent to close at 1,343.01 on Feb. 18 before dropping 6.4 percent to 1,256.88 through March 16.
Source: Bloomberg
Top market-timer Demark: "Capitulation" selloff could bottom soon
The Standard & Poor's 500 Index may drop as low as 1,076 before investor panic abates and stocks rally, according to Tom DeMark, the creator of indicators for identifying turning points in securities.
The benchmark index for U.S. equities may fall that far intraday as early as next week and then gain as much as 20 percent, DeMark said in a telephone interview from Phoenix today.
The swings will push the VIX, as the Chicago Board Options Exchange Volatility Index is known, above the high of 48 it reached on Aug. 8, he said.
"We're trying to identify when selling capitulation is about to be completed," said DeMark, the founder of Market Studies LLC. "We're trying to identify the inflection point on the downside when the last seller sold. It could come as early as next Thursday."
While markets are driven by the economy, prices move in patterns and traders can use them to identify when to buy and sell, according to DeMark, who has spent more than 40 years developing indicators with names like "sequential" and "countdown."
An adviser to Steven A. Cohen's SAC Capital Advisors LP, he provided consulting to hedge funds including George Soros's Soros Fund Management LLC and Leon Cooperman's Omega Advisors Inc., according to the Market Studies website.
DeMark said during an interview in January that U.S. stocks were within weeks of "a significant market top." The S&P 500 sank 1 percent the next day, the most in two months. It then rose 4.8 percent to close at 1,343.01 on Feb. 18 before dropping 6.4 percent to 1,256.88 through March 16.
Source: Bloomberg
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
