Bearish Chorus Grows: Janjuah, DeMark, Lowry, etc.

The bearish chorus is growing day by day. And I’m ignoring the perma-bears like Albert Edwards (Societe General), James Montier (GMO) and David Rosenberg (Gluskin Sheff), et al.

I’ve already mentioned a few times that Lowry Researrch is expecting a 10% correction. This has been the case since the start of the year. While the oldest technical research firm on Wall Street has serious concerns in the short term, they are unmoved in the conviction that the cyclical bull market is going to be over any time soon.

Tom DeMark is expecting a “significant market top” any day now with an ensuing correction of 11%. This is based on the DeMark Sequential and Combo indicators which predict inflection points in the market. DeMark said in a recent phone interview: “I’m pretty confident that in one to two weeks, the market will be in a descent. It could be pretty sharp.” For more see this article from Bloomberg.

Bob Janjuah was talking this morning with Bloomberg TV about why he’s “tactically bearish” with expectations for a 10% correction:

Vodpod videos no longer available.

You can also watch the Bloomberg clip here.

Janjuah’s major concerns are that the “risk on” trade riding the reflation wave from the Fed is now over and it is time to go “risk off”. His three major concerns are a (hard) slow down in Asia, a festering European crisis that has yet to be addressed fully and the question of the US economic recovery. He is also expecting a correction of appx. 10% for US markets.

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9 Responses to Bearish Chorus Grows: Janjuah, DeMark, Lowry, etc.

  1. RM says:

    Expecting a 10% correction is bullish sentiment.

  2. According to my research we are due forva median 10.2% decline in the NASDAQ

  3. Yes, you have mentioned a few times in your blog recently that Lowry’s is expecting a 10% correction. Problem is, that forecast was revised several weeks ago, of which our subscribers are fully aware. Therefore, you are disseminating incorrect and misleading information regarding Lowry’s current market opinion. This is an issue that your readers should be aware of since, at times, you are reporting outdated information.

  4. Dr Bohica says:

    Ah, yes, Lowry’s has a history over this past market cycle of changing its mind a lot.

    Nothing wrong with that, except that what this shop peddles is an expensive windsock that’s cost its clients quite a bit in opportunity losses.

    Probably best not to subscribe and accept the outdated information for what it is.

  5. Babak says:

    Let’s not jump to conclusions – you don’t know for example if Lowry is now calling for a 15% correction (just saying as an example).

  6. Pingback: Jeremy Grantham’s Quarterly Letter: “Pavlov’s Bulls” | tradersnarrative

  7. Dr Bohica says:

    OK, it has been over a week since DeMark predicted an imminent wreck. What’s going on? Does anyone keep track of these guys’ bad calls because I haven’t noticed this fellow is any better than the Elliot Wave people over the long-term.

  8. Tom T says:

    Dr. Bohica – I spoke with Tom Demark after the bberg story hit – he has been focused on many european indexes that are exhausting or near exhaustion. The SPY hit a 13 this past Friday. He also said early premarket that it would hit a high and fade. Seeing the bearish engulfing bar with a 13 sequential countdown is impressive. Tom’s work also is clear – within 12 bars or days a price reaction should occur. If it doesn’t then the signal loses strength. There are also stop out points too with his work. It’s easy to bag on anyone’s work without understanding and certainly easy to forget to follow up when it works… like it has started to now. Take a look at also how small cap stocks have lagged the bigger more narrow indexes – also something Tom said would happen. Look at euro 600 index how that has exhausted too. Very similar to last April too. Tom Demark back in late August also turned bullish against the consensus – how’d that call go?

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