Sell Signal? NFW
There is a famous Market Technican named Tom DeMark who has a following as his signals are well read and respected by some of the top Wall Stree Hedge funds like Stevie Cohen and John Burbank. DeMark is supposed to go on Mad Money to tout his latest sell signal tonight.
The signal has not been that effective and in fact Cohen and his team rarely use DeMark for his signals anymore. We are skeptical because we use Erlanger Chart Room. First, the Market Advance/Decline Line remains very strong. This means that more stocks are advancing than declining.
Second, the Erlanger Volume Swing (EVS) has just turned positive after some weakness in May. Rarely, does it reverse lower so quickly after turning higher.
P.S. DeMark called for a big sell off in the first half of 2021 and that never materialized.