Jan 11

- Tom DeMark: “Sell The World” And Soon, The US (ZeroHedge, Jan 11, 2013):

Because there are still some traders who adhere to such old normal traditions as charting and technical analysis (because apparently the FOMC committee sits down each month and observes Ichimoku clouds, RSI indicators and Bollinger bands), it is probably notable that one of the most respected chartists, Steve Cohen’s favorite technician Tom DeMark, is now uniformly bearish on virtually all markets around the world which have triggered a sell signal in his studies, and is about to drop the axe on the US as well where a “Daily 13″ signal is imminent. The caveat, of course, is that in a world in which fundamentals haven’t mattered in years, which should technicals?

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2 Responses to “Tom DeMark, Technical Analyst Of The Year 2011: ‘Sell The World’ And Soon, The US (Video)”

  1. Marilyn Gjerdrum Says:

    In Jan, 2010, every international transaction between nations was completed using the US dollar. Thanks to the advent of electronic currency, today, we are down to 60%…..40% of the world GDP contributors no longer use the dollar. That includes, Russia, China, Japan, India, many African nations, the South American Trade Alliance (they got the ball rolling using the Sucre in June 2010), Brazil, Turkey, and other nations, including many middle eastern nations. That is a huge hit.
    Add in the fact in the same time period, total foreign investment into our debt or currency is down to $5.5 Trillion, China alone held that much in 2007. We are printing money and paying our own debt to keep it current.
    Corporate bonds have been paying an average of 11.2% per annum while US bonds have paid virtually nothing. Remember reading about all the corporations sitting on $7 trillion dollars? There is only one slight problem. The corporations are paying out more in their bonds than they are taking in by about 50%. So, they are in debt, they are not solvent, they are floating debt, nothing more.
    The only growth over the past 12 plus years in western civilization (Euro, US, Japan, etc) has been debt….debt leveraged at an average of 1000:1. In 1929, our markets collapsed when we were leveraging 9:1. The amount of debt so far exceeds the amount of money in the world that there is no way it will ever be repaid. Even more, much of that money that was created and loaned on paper has never existed. It is a giant shell game, but more people are realizing there is nothing under any of the shells, and are backing away.
    I don’t know where it will end, but it is ending soon. No inflation? Go to the grocery store, and say that again. Essential services, food, medicine, transportation, energy, education ….all of these costs are going through the roof. The people getting burned are those who try to save money (no interest rates for savers), those who are underwater with their homes, and falling opportunities for middle class growth.
    History has taught a stable, educated and prosperous society is one that grows and contributes. Our leaders are doing everything in their power to undermine and destroy it. 96% of all new jobs are part-time that provide no retirement or benefits, while all the good jobs continue to go offshore thanks to our corrupt trade agreements.

  2. stefan Says:

    It would be nice to see the verification of DeMark methods on a large portfolio.

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