The Dow Jones Industrial average had an outstanding gain in the month of March. The blue chip index rose +7%. Continue reading
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Category Archives: Coppock Index
Coppock Curve: February 2016
The Dow Jones Industrial average gained ground in February. However, that didn’t change the direction of the Coppock Curve which dipped to –23.4. Below is the current chart of the curve. Continue reading
Coppock Curve: January 2016
We started the year off on with a big market selloff. The Dow Jones Industrial Average fell -5.4% in January. For the first time since June 2008, the Coppock Curve dipped into negative territory. This is a welcoming sign for our team and any long-term investors. Below is the current chart of the Coppock Curve. Continue reading
Coppock Curve: November 2015
The market was flat for the month of November. However, it didn't stop the Coppock indicator to fall another -20% or 6.2 points. As always, we remind our readers that the Coppock Curve serves as a buy signal when they it turns upward after moving into negative territory. Continue reading
Coppock Curve: October 2015
The market reversed a recent declining trend in October by increasing +8%. Despite the reversal of the trend, the Coppock indicator continued its downward path. The index fell 9.8 points and is only 32 points away from approaching negative territory. As always, we remind our readers that the Coppock Curve serves as a buy signal when they it turns upward after moving into negative territory. Continue reading
Coppock Curve: September 2015
The market continued its down draft in September. Long-term investors should be very excited to see the market pull back. Our Coppock indicator is approaching a level we haven’t seen since 2008. As a reminder, the Coppock Curve serves as a buy signal when they it turns upward after moving into negative territory.
Coppock Curve: August 2015
It didn't take long for the market to cave in after our July post on the Coppock Curve. The Dow Jones Industrial Average shed -6.5% in August alone. Immediately, we were curious what type of damage this decline did to the indicator and how close are we to that negative territory. As a reminder, the Coppock Curve serves as a buy signals only. Continue reading
Coppock Curve: July 2015
It's been quite sometime since we've updated our readers on Coppock Curve. We've gotten more excited to see this indicator approach zero because it would point to a major opportunity to be long equities. While the indicator provides buy signals it doesn't offer any sell indication. As such, one can only take this as a buy only indicator.
About Coppock Curve
The Coppock Curve is one of the technical indicators that we focus on for long-term buy signals for the stock market. The Coppock Curve is only useful as a BUY indicator when the chart goes from positive territory to the negative territory then turns decidedly upward. As previously indicated, the Coppock Curve does not provide SELL signals in any way.
Coppock Curve: March 2015
The Coppock Curve is one of the technical indicators that we focus on for long-term buy signals for the stock market. The Coppock Curve is only useful as a BUY indicator when the chart goes from positive territory to the negative territory then turns decidedly upward. As previously indicated, the Coppock Curve does not provide SELL signals in any way.
Once the signal turns upward (while in the negative territory), investors should consider buying stocks at the beginning of the month. Our last “buy” indication came at the end of April 2009. Anyone who purchased the Dow Jones Industrial ETF (DIA) on the first trading day of May 2009, they would have gained +109% in the process (based on the closing price of March 2015).
While the curve remain positive, the direction and the slope is negative. We would get excited if and when this indicator reach the negative zone. We will certainly update our readers when that time comes.
Posted in Coppock Curve, Coppock Index
Coppock Curve: May 2014
The Coppock Curve is one of the technical indicators that we focus on for long-term buy signals for the stock market. The Coppock Curve is only useful as a BUY indicator when the chart goes from positive territory to the negative territory then turns decidedly upward. As previously indicated, the Coppock Curve does not provide SELL signals in any way.
Once the signal turns upward (while in the negative territory), investors should consider buying stocks at the beginning of the month. Our last “buy” indication came at the end of April 2009. Anyone who purchased the Dow Jones Industrial ETF (DIA) on the first trading day of May 2009, they would have gained +104% in the process (based on the closing price of May 2014).
Coppock Curve: March 2013
The Coppock Curve is one of the technical indicators that we focus on for long-term buy signals for the stock market. The Coppock Curve is only useful as a BUY indicator when the chart goes from positive territory to the negative territory and then starts to turn decidedly upwards. As previously indicated, the Coppock Curve does not provide SELL signals in any way.
Coppock Curve: July 2012
The Coppock Curve is one of the technical indicators that we focus on for long-term buying signals. The Coppock Curve is only useful as a BUY indicator when the chart goes from positive territory to the negative territory and then starts to turn decidedly upwards. As previously indicated, the Coppock Curve does not provide SELL signals in any way.
Once the signal starts to turn up, investors should consider buying stocks at the beginning of the month after the indicator turns upward. Our last "buy" indication came at the end of April 2009. Anyone who purchased the Dow Jones Industrial ETF (DIA) on the first trading day of May 2009, they would have gained +59% in the process.
After July 2012, the Coppock Curve remains far from the negative zone. This suggests that, overall, the market is not considered a "buy."
More about the Coppock Curve.
Coppock Curve Q & A
A reader asks:
"Isn't it possible to determine good times to sell stocks using the Coppock Curve?"
Touc's reply:
My understanding of the Coppock Curve is that it is strictly for the purpose of giving buy signals. Sell signals are purely coincidental if they occur at all.
Drawing from Mr. Coppock's own words in Barron's October 15, 1962 article, Mr. Coppock states that,"It [Coppock Curve] gives a so-called buy signal."(page 5) Mr. Coppock goes even further to state that, "Because well-timed buying is far more difficult for the nonprofessional investor than timely selling, it is best to think of the curve as a very long-term buying guide. Its formula was devised for that type of use." (page 5,16)
In James Dines' book Technical Analysis (page 377, 1972), there is no mention of the Coppock Curve as being able to provide a sell signal or eminent market slumps. Any mention of the Coppock Curve was with the ability of the Curve to "pinpoint the start of new trends and enable investors to select future market leaders." (page 378)
There seems to be no evidence that would suggest that the Coppock Curve should be used to determine potential declines. Instead, the Curve should only be tested on its ability to accurately call the bottom in a given stock or index.
Best regards.
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Market Checkup: Coppock Curve
It's been quite some time since we made an update to the Coppock Curve. The curve or index moved into positive territory in January 2010. Let me remind you that the Coppock Curve is only a buying indicator and tells us nothing about selling. For an indicator to become bullish, the curve has to be in a negative territory and turning upward. I indicated that the bullish indicator came in May 2009 when the index rose from -386 to -380. Table below shows the March low (2009) up until now.
| Date | Index |
| Mar-09 | -374.4 |
| Apr-09 | -386.0 |
| May-09 | -380.5 |
| Jun-09 | -376.5 |
| Jul-09 | -357.8 |
| Aug-09 | -319.1 |
| Sep-09 | -265.3 |
| Oct-09 | -212.7 |
| Nov-09 | -147.3 |
| Dec-09 | -61.7 |
| Jan-10 | 25.1 |
| Feb-10 | 95.0 |
| Mar-10 | 168.0 |
The chart below shows that we are clearly in the positive territory. This leave us with one thing, for the curve to turn negative and reverse for a possible buy signal.
If this curve isn't an indication to sell, then why am I writing about this? Because I believe that it is a great tool for long-term investors and they should be aware of this unique indicator. When the index turned upward in May 09', many small investors, myself included, were still bearish on the market and ignored this technical indicator. Emotions and anger about the bailout clouded our judgment. As a result, many missed the chance to buy the market via ETFs or mutual funds. Even though I was bearish, I stated in that article "This could be the beginning of a greatest investment opportunity if you look in the right place. I suggest you begin accumulating shares but with caution!"
The good news is that some time in the future, this curve will turn negative again. We'll be more excited when that happens. The bad news is, we just don't know when this will happen. Until then, do your research on the Coppock Curve to see if this indicator can be of any benefit to your investment strategy. We will keep an updated chart on the curve and update you when an opportune time arrives.
Click here for more explanation on the Coppock Curve and here for the calculation method. - Art
Quote of the day:
"To know values is to know the meaning of the market. And values, when applied to stocks, are determined in the end by the dividend yield." Charles H. Dow.
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Coppock Curve Review
"Too much too soon." Those are the words of E.S.C. Coppock in describing the emotional state of the uninitiated investors response to the ups and downs of the stock market. The purpose of the Coppock Curve is to measure the emotional overreaction to the movement of the stock market.
Mr. Coppock observed that investors tend to ignore the fact that earnings are stable or rising and instead sell off a stock which is thought to be in trouble. Therefore, the monthly averaging of an index like the Dow Jones Industrials allows for better clarification of the what the price action is telling us.
So far the Coppock curve is indicating that, although we may not be at the bottom in the stock market, we are still in a relatively risk free period to invest in stocks. The following is the movement of the index from the lowest point since April 2009:
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Apr 2009: -388
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May 2009: -383
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Jun 2009: -378
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Jul 2009: -359
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Aug 2009: -321
With the Coppock Curve indicating that we're at a relatively risk free period for stocks along with the Industrial Production Index moving up and the Dow Theory bull market indication of July 23rd, it appears that we could be on our way to higher levels in the stock market and the economy over an extended period of time. Dow Theory still has a pending non-confirmation to be worked through but I will not report on that until we get a resolute signal. Touc.
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Posted in Coppock Curve, Coppock Index