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\n\t\t\t\t\tRecommendation Changes (past week)<\/strong> I realise that most of you will have never heard of this indicator. That’s The last time the Coppock Indicator signalled the birth of a new bull market Though the Coppock Indicator was originally designed for the US share market, If you look at the chart below you’ll see the indicator also successfully As I said above, the indicator has now started to signal the next sustainable So how does this indicator work? <\/p>\n The Coppock Indicator, which is also referred to as the “Coppock Curve” and According to the legend, Coppock asked the church bishops how long do people Others have finetuned the original setup; UK magazine Investors Chronicle A Buy signal is generated when the indicator falls below zero, reaches a So where are we now according to this Indicator? Well, as I said above, the It’s probably fair to say we are still months away from the Indicator’s next Personally, I always try to match these Indicators with the fundamental picture \t\tBuy\/Hold\/Sell Breakdown<\/strong> By Rudi Filapek-Vandyck, editor FNArena This may seem like an odd thing to say but what we are witnessing on…<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[85],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/54508"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=54508"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/54508\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=54508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=54508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=54508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n not so strange given the Coppock Indicator is rather seldom used and referred
\n to. This is not because it’s unreliable, or too exotic -in fact the Coppock
\n Indicator has a solid reputation- it’s just that this particular indicator
\n was originally designed to help long term investors in deciding when to step
\n into the share market; it signals when a new bull market is being established
\n and as such, as everyone will understand, this indicator only becomes useful
\n every six years or so. <\/p>\n
\n was in May 2003 – we all know now that was when the commodities driven uptrend
\n of the past four years found its origin. The second last time was in 1995:
\n back then Australia was climbing out of the doldrums of the “recession we had
\n to have” and banks were at the early stages of what would ultimately become
\n a golden era for the financial sector. <\/p>\n
\n at the time of its original inception in the 1960s, it has been successfully
\n applied to many other share market indices, like the All Ordinaries index in
\n Australia, with technical analysts finding the indicator has withstood the
\n challenge of backtesting data up to 100 years into history. <\/p>\n
\n flagged the previous steep bull market from 1982-1987. Since then the Coppock
\n Indicator has successfully flagged the next wave up five more times and only
\n the share market movement between 1988 and 1989 appears a bit “wishy washy” (though
\n still accurate). <\/p>\n
\n uptrend is coming. It will be number seven since 1982.<\/p>\n<\/p>\n![](\"http:\/\/www.fnarena.com\/images\/email\/fnweekly.jpg\")
<\/p>\n
\n the “Coppock Guide”, was first published in 1962 in Barron’s. It was developed
\n by economist Edwin Sedgwick Coppock who at the time had been asked by the Episcopal
\n Church to develop a tool for longer term oriented investors. As the story goes,
\n Coppock thought share market downturns were comparable to bereavements and
\n thus a natural period of mourning was required. (I am not making any of this
\n up). <\/p>\n
\n usually mourn? Their answer was 11 to 14 months and so he used those periods
\n in his calculation. Without going too much into detail, the Indicator is specifically
\n designed for longer term signals (Coppock originally used monthly periods for
\n his base calculations), it has a solid reputation for not confusing the next
\n bear market rally with the start of a new sustainable uptrend, and as said
\n above, it tends to pick the correct signals for when a new bull market is being
\n established. <\/p>\n
\n developed its own modified version which generates Sell signals as well as
\n long term Buy signals, but it is widely recognised the Coppock Indicator is
\n best used to pinpoint the next sustainable uptrend in the share market. <\/p>\n
\n bottom and subsequently starts trending upwards again. By then you are likely
\n to have missed out on the early gains in the share market (two to three months),
\n as the Indicator takes its time to establish whether we have something sustainable
\n in place, but at least you know it’s genuine, and not the next bear market
\n trap. <\/p>\n
\n Indicator has turned negative this month, for the first time since 2002, not
\n only for the All Ordinaries but also for the main indices in the US, Japan
\n and the UK. But investors better not get excited just yet; last time it took
\n 11 months before the Indicator gave a Buy signal after it first fell below
\n zero (July 2002-May 2003), but in 1995 and in 1992 it only took 5 months. <\/p>\n
\n Buy signal, but at least we know it’s coming (as opposed to between December
\n last year and June this year). <\/p>\n
\n and the likely news flow ahead. Maybe it is no coincidence the Coppock Indicator
\n only fell below zero in July; the global finance sector is likely to generate
\n many more negative events, as will the slowing of global economic growth. At
\n some point most of the negative news will truly have come out, and the worst
\n of the worst will have been priced into equity markets and into securities
\n analysts forecasts – I suspect that soon after all this has happened the Indicator
\n will start trending upward again. <\/p>\n
\n
\n
\n\t\t<\/p>\n
\n","protected":false},"excerpt":{"rendered":"