There is definitely technical merit to expecting further downside in the markets over the course of 2014, but the S&P 1100 call is a promotional stunt at best. More detailed thoughts are below.
After I saw it, I began thinking about it why he would put a call like that out there.
Sure you can put a broad overlay with the 1929 crash and say we're following the 1929 scenario, but what about other motivations? I tried to think about it from a technician's perspective.
It's a great time to be bearish right now. Why?
I think the only real thing we can takeaway here is the market has changed character in a big way and you have to use high quality trading practices now as much as ever.
Good luck and good trading!
Sure you can put a broad overlay with the 1929 crash and say we're following the 1929 scenario, but what about other motivations? I tried to think about it from a technician's perspective.
It's a great time to be bearish right now. Why?
- You can definitely make the case that a large portion of Asia and South America technically do look 'crash bad'
- All the indicators of broad market top are there from valuations to length of the bull market to group rotation.
- Strategist and retail investor sentiment has hit some hard to believe bullish extremes. Buy the dip sentiment is prevalent right now.
Then of course from a promotional perspective
- You have quite a few anti QE/anti Bernanke bears that would drink that potion immediately with the taper beginning.
- If you have a chart comparison to the crash of 1929 why not just go for it? People have short memories. (DeMark makes a market calls frequently)
- DeMark has a very unique style and with retail investors paying more attention to the market than they have in years, it's the perfect time to make a big call.
Good luck and good trading!
