The Signal: a slight wiggle in a long down-ward line. But news that the revered Coppock Indicator* has just flashed a “buy” signal in a number of the world’s biggest stock markets was the talking point in equity markets all last week. As the global stock rally is into the forth month, the tech indicators are flashing a clearer signal, and savvy watchers are looking for clues as to what might happen next in the what keen and seasoned observers have noted the beginnings of the emerging long term Bull Market. The Coppock Indicator, a measure of long-term market sentiment and applicable to any stock index. It signals a buy signal when it turns upwards from a value of less than zero. Traditionally calculated every month, it began hinting at an upturn in May. Followers have are now seeing buy signals in markets ranging from New York to London to Tokyo. The widespread interest in the Indicator, named after its inventor is a sign of just how nervous watchers have become about predicting short-term moves. In normal times, analysts are happy to discuss their expectations for the next six months and become progressively vaguer after that. Currently it is the reverse. There is no doubt there will be a recovery, but analysts, Bulls and Perma-bears vary widely on when they think it will be, and can be very cautious in saying just how well underpinned they feel the recent market moves are. “Momentum investing can be very profitable and perhaps eight times out of 10, these indicators work pretty well. But they’re not foolproof and you can be disappointed,” said Albert Edwards of Société Générale. “If you haven’t got a strong fundamental view as I have, then maybe you should go with the Coppock.”
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