Category Archives: Coppock Index

Coppock Stocks: May 2022

One of the thing long-term investors should be excited about when market correct is the ability to acquire great companies at lower price. That being said, timing the purchase is the most difficult things to achieve. A timing tool that’s worth considering is the Coppock Curve. We have written extensively about the Coppock Curve and you can find historical content here.

The Coppock Curve only provide a buying indicator and not sell, thus we have little to update on this indicator in recent months. However, recent market correction caused more companies to enter what we call, the research phase. This is when the indicator moved into negative territory but have not shown a buy signal. Before we go further, let us review the 8 companies and 1 ETF that was a buy according to the Coppock Curve at the end of December 2020. The chart below shows the performance since January 4, 2021 – June 3, 2022.

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At the end of May 2022, these are companies that have enter the research phase and you should start your research on fundamental if you wish to acquire them in the near future. We will provide a monthly update and track when a buy signal is triggered. Continue reading

Coppock Stock: April 2021

At the end of April 2021, two companies were a "buy" according to the Coppock Curve. So far, the strategy has worked well. Take a look at the chart below which consists of companies with "buy" signals on December 1, 2020. All companies outperformed the market by a significant margin.

For this week, please see the table below for the 2 companies with a "buy" signal as of May 1, 2021. Continue reading

Coppock Stock: March 2021

Before we release 3 stocks that reached buy-signal based on the Coppock Curve, we want to visit 6 companies we highlighted at the end of November 2020.

Screenshot 2021-04-01 102624

As one can see, the performance for these 6 companies have been astonishing. The most interesting observation is that Capital One (COF) is the best performer with gain of 42%. However, historical pattern shows that it has the lowest success rate of 33% and tend to loss value over 1 year holding period.

At the end of March 2021, there are 3 companies reaching buy-signal from the Coppock Curve. All these companies are utilities which doesn’t surprise us given that the Dow Jones Utility index was a buy 2 months ago. Continue reading

Coppock Curve: March 2021

Below is the Coppock Curve data for the following indexes as of the end of October 2020:

  • Dow Jones Industrial Average
  • Dow Jones Transportation Average
  • Dow Jones Utility Average
  • S&P 500
  • Nasdaq Composite
  • Philadelphia Gold and Silver Index
  • Russell 2000
  • Philadelphia Semiconductor Index
  • iShares Nasdaq Biotechnology ETF
  • Toronto Stock Exchange

If you’re interested in a index not listed, let us know.

Continue reading

Coppock Stock: February 2021

The Coppock Curve has proven to be a reliable indicator for certain equities. We started tracking individual stock performance using the Coppock Curve since May 2020 and the performance since then can be seen below.

Years Purchase Month # of Companies Average Total Return %
2020 May 4 48.0%
Jun 1 38.2%
Aug 10 38.3%
Sep 2 22.8%
Nov 6 31.0%
Dec 18 25.1%
2021 Jan 9 15.3%
Feb 2 1.8%

At the end of February 2021, only one company reached a buying indication based on the Coppock Curve. Continue reading

Coppock Stocks: December 2020

The market ended the year up more than 15%. Last month we published the first list of individual companies using Coppock indicator and the average gain was 5.0%, exceeding the S&P 500 gain of 2.3%.

The table below contains 9 companies that completed the buying indication based on the Coppock Curve at the end of December 2020.

The statistics below are based on a holding period of 1 year. One measure to pay close attention to is the success rate which is the number of times this indicator yielded a positive return within 1 year. The loss columns are there to remind us that investing is not risk free. Continue reading

Coppock Stocks: November 2020

The market had a strong November and pushed the indicator forward into the positive territory. As noted several months ago, the buy signal occurred in July 2020 which proved to be a well timed buy signal.

To better enhance this indicator, we have been collecting data on individual stocks and back testing the strategy. Several months ago, our team applied this strategy (refer to Coppock Curve Applied to Individual Stocks) to 4 companies with amazing result. The average return was +46% since May. We hope that the list below provides you with a viable starting point for your research. Continue reading

Nifty 50 – Coppock Analysis

Recently, we’ve seen some success applying the Coppock curve or indicator to individual companies. Could we scale this to an emerging market such as Nifty 50, a benchmark Indian stock market index? Running the data through this model reveals some exciting findings, so let’s dive into it.

The assumption we are working with is purchasing the Nifty 50 (^NSEI) when the Coppock issues a buy signal. The target holding periods are 1-3 years. Below are summary table showing important statistics such as success rate, largest loss or risk, average gain, and annualized return. Continue reading

Coppock Curve: October 2020

Below is the Coppock Curve data for the following indexes as of the end of October 2020:

  • Dow Jones Industrial Average
  • Dow Jones Transportation Average
  • Dow Jones Utility Average
  • S&P 500
  • Nasdaq Composite
  • Philadelphia Gold and Silver Index
  • Russell 2000
  • Philadelphia Semiconductor Index
  • iShares Nasdaq Biotechnology ETF
  • Toronto Stock Exchange
  • Bitcoin

If you’re interested in a index not listed, let us know. Continue reading

Coppock Curve: September 2020

Below is the Coppock Curve data for the following indexes:

  • Dow Jones Industrial Average
  • S&P 500
  • Nasdaq Composite
  • Philadelphia Gold and Silver Index
  • Russell 2000
  • Philadelphia Semiconductor Index
  • iShares Nasdaq Biotechnology ETF
  • Toronto Stock Exchange
  • Bitcoin

If you’re interested in a index not listed, let us know.

Continue reading

A Strategy For the Coppock Curve

On, August 1, 2020, we said the following:

“Last month, the Coppock Curve dipped into negative territory flagging us to closely monitor this indicator for a buy signal. In addition to monitoring the Dow Jones Industrial Average, we created a model to back test this strategy against individual stocks. So far, we are very satisfied with the outcome.”

Based on our prior work, we have developed a strategy to compliment the indications made by the Coppock Curve when applied to the Dow Jones Industrial Average. Continue reading

Coppock Curve: July 2020

Last month, the Coppock Curve dipped into negative territory flagging us to closely monitor this indicator for a buy signal. In addition to monitoring the Dow Jones Industrial Average, we created a model to back test this strategy against individual stocks. So far, we are very satisfied with the outcome. Below is the current status of this indicator when we apply it to the Dow Jones Industrial Average. Continue reading

Coppock Curve: May 2020

The last time we updated this indicator in March 2020, the Coppock curve changed directions from an upward bias to a move down. Two months later, the curve now stands in negative territory. This mean that the next meaningful move on the upside of this indicator is a buy signal. Below is a chart of the Coppock at the end of June 2020. Continue reading

Coppock Curve – Berkshire Hathaway (BRK-A)

The recent market rally has pushed the market (S&P 500) near break even for the year. However, shares of Berkshire Hathaway (BRK-A) remain -11% below the price at the start of the year. This drop in value could potentially be a buying opportunity and today we apply the market timing strategy of the Coppock Curve to Berkshire shares.

It’s a rare occurrence when the Coppock Curve for Berkshire reach negative territory. For 40 years, there are only 8 times (once every 5 years) we get a buy signal. We haven’t receive a proper buy-signal yet but let’s review what it did in the past.

The table below shows a summary statistic of all 7 signals from the past. Continue reading

Coppock Curve Applied to Individual Stocks

The Coppock Curve was never intended to be use on individual companies but we continue to challenge that premise as more data are available which allow our team to back test the strategy.

There are times when this indicator have proven to be less effective on companies (Ford or CVS) while other have shown strong track record.

With extensive research on this indicator, our team decided to track the performance of some companies on a monthly basis and hope that our readers could utilize them as source for their long-term investment strategy. We begin the month of May with 4 companies that have established a buy signal using the Coppock Curve. Continue reading