Time to update the Coppock Curve once again. Instead of saying what I always have to say about the Coppock Curve, I'll use a "re-tread" post from July and insert the updated chart below. As you can see, the Coppock line is happily drifting above the zero line which means that the buy signal from 2009 was the last signal this chart has given. Sell signals do not apply as I always state when posting the Coppock Curve.
From July 2012 (with updated chart through November 2012)...
As a
refresher, the Coppock Curve was developed by a guy named Coppock. He had been
asked by the Episcopal Church to identify buying opportunities for long-term
investors. He thought market downturns were like bereavements and required a
period of mourning so he used 11 and 14 months in his calculation after the
church bishops informed him that bereavement periods generally last 11 to 14
months. Gotta
love the science.
The formula is simple: Coppock = WMA[10] of (ROC[14] + ROC[11]). WMA is the weighted moving average and ROC is the rate of change. If my weighted averages are weighted in the right places, the chart now looks something like this:
The formula is simple: Coppock = WMA[10] of (ROC[14] + ROC[11]). WMA is the weighted moving average and ROC is the rate of change. If my weighted averages are weighted in the right places, the chart now looks something like this:
Why doesn't this work both ways? That's easy (said the monkey). Look back at the history. Coppock is using bereavement period science here. How many times have you heard someone say, "I am so happy he died. I wonder when I'll be sad again".
I'm assuming that we are talking about loved ones rather than enemies.
