STA Blog

Tom DeMark finds the time: Creator of DeMark Indicators

Introduced by Guido Riolo, Bloomberg’s Head of Charting, as ‘a genius of the world of finance’ whose Sequential®, Combo®, and TD Lines® the terminal supplies, audience expectations were running high at the STA’s monthly meeting. A heavyweight in the world of technical analysis, with 44 years’ work under his belt, he and his posse arrived from the US this week.

With an elephantine memory of stock market moves (he started following the markets in 1971 going full time at America’s National Investment Services in 1972) he took us through a series of old – perhaps too old for some – examples of his market calls. Having worked with the Bunker-Hunt brothers as they cornered the silver market in the early 1980’s and who then ignored his recommendation to sell out, when reiterating his call as the price plummeted they asked, ‘sell to whom?’ A lesson to us all that in bull markets one must prepare to sell into strength, and in bear ones remember that they end when the last bear has sold.

Tom DeMark with Guido Riolo, Bloomberg and Axel Rudolph, Chairman STA

Tom DeMark with Guido Riolo, Bloomberg and Axel Rudolph, Chairman STA

He insists, ‘I am not a pure technician in the conventional sense’ as ‘everything we have developed is anticipatory’; his focus is market timing, adding my ‘whole background is institutions – not mental though’ as his wife often reminds him! Focusing on the difference between daily opening prices from the previous close, rather than close to close, pessimism grows if they gap lower or if they ‘foot downside’ (close lower). He then compares this with the previous four closes and if the most recent close is ‘flip downside’ (below the last four) it suggests a change in tone, if not trend.

Interestingly he claims his personality changed in February 2016 and that he is finding the US stock markets extremely tricky. Due in part to ‘the authorities who have disrupted the natural rhythm of markets’ nevertheless he has not adjusted his models because ‘trends can be delayed but ultimately will win out’. Claiming he hasn’t slept in days, exacerbated by a long plane flight on Monday, he had a couple of senior moments and was ably rescued by his two protégés.

The presentation has been recorded and will be available shortly to members only on www.technicalanalysts.com

Posted in Finance, Markets, STA news, Technical Analysis, Trading, Trending
Tags: , ,

Leave a Reply

Your email address will not be published.

Disclaimer

The views and opinions expressed on the STA’s blog do not necessarily represent those of the Society of Technical Analysts (the “STA”), or of any officer, director or member of the STA. The STA makes no representations as to the accuracy, completeness, or reliability of any information on the blog or found by following any link on blog, and none of the STA, STA Administrative Services or any current or past executive board members are liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. None of the information on the STA’s blog constitutes investment advice.

Not ready to join? Stay Updated

If you want to learn more about membership and being part of the STA, sign up for our updates so we can keep in touch.

  html
  text

Monthly Meetings

The STA holds 11 monthly meetings in the City of London, including a summer and Christmas party where canapés and refreshments are served.

MORE INFO

Latest Videos

As a service to our members, many of whom are unable to attend all our monthly meetings, we have been making videos of meeting presentations for several years.

MORE INFO

STA Libraries

The STA has an extensive library of classic technical analysis texts. There are over 1000 books in the collection. It is held at the Barbican Library with a smaller...

MORE INFO

Market Technician

Latest research and news

More Info

World Class Tutors

STA Course Lecturers

More Info

Membership

Be part of something special

More Info

Blog

View latest posts

More Info