As of the market close Nov. 12, it had dropped 3.8 percent from that high.ĭeMark, 65, is a member of a group of market forecasters who devote their days to poring over price charts, looking for recurring mathematical patterns. The index rose to only 1,434 intraday before falling. He was right about the decline, not the peak. His latest call on stocks was Oct. 24, when he said the S&P would reach 1,480 - a new high for the year - within two weeks, then reverse. His system also flashed buy just before a July rally in oil futures and an August surge in silver. The S&P touched 1,074.77 intraday eight trading days later and had moved up 20 percent by Jan. 22, 2011, he said the Standard & Poor’s 500-stock index would soon bottom at 1,076 and then rise 20 percent. “Using DeMark indicators is like seeing the market in color, when before you were looking at it in black and white,” he says.Īmong DeMark’s calls: On Sept. (Andrew Harrer/Bloomberg News)īurbank says that he’s tested DeMark’s algorithms and that they’re much more predictive than other systems. Tom DeMark, founder and president of Market Studies. In Norse mythology, the thunder god Thor carries a massive mallet with which he crushes mountains. “When I use DeMark’s work, I feel like I’m wielding Thor’s hammer,” says David Goel, managing partner at hedge fund Matrix Capital Management, which manages $2 billion. Get DeMark’s followers talking, and their enthusiasm for his market calls is unbounded. DeMark has a phone on his desk that’s dedicated to Cohen, whose hedge fund has made money every year save one since 1993.ĭeMark’s system for predicting where markets will move, divined from four decades of chart gazing, is based partly on the recondite mathematical relationships that devotees see in the design of the Parthenon in Athens and the Great Pyramid of Giza. SAC and Passport each own a piece of DeMark’s company, Market Studies. He’s a consultant to Steven Cohen, founder of SAC Capital Advisors, which manages $14 billion, and John Burbank, founder of $3.4 billion Passport Capital. Since he started in the investment business in 1971, DeMark has advised some of the biggest names on Wall Street, men such as Paul Tudor Jones and Leon Cooperman. It has to, DeMark says, because he often gets up after midnight to scrutinize charts of stocks, bonds, commodities and currencies to see if his numerical system for predicting their behavior is working. The office abuts the master bedroom of his Scottsdale, Ariz., home. Past the two Bentleys in the driveway and beyond the pool and mini water park, the home theater and a sports bar hung with enough memorabilia to equip a basketball team, Tom DeMark has his office - a dark, wood-paneled lair with six computer screens.
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