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.