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IC/Coppock: Sell, sell, sell

Eleven indicators have produced new sell signals, against just one buy for August
September 6, 2007

The "sell" signals produced by the FT 30 Industrial Ordinary and the one for the Republic of Ireland in July certainly turned out to be the outriders to the pack. The fall in global indices in July/August caused another 11 of our indicators to change direction and produce "sell" signals in August.

Stockmarkets around the world suffered their worst one-day falls in four years and it took the intervention of the US Federal Reserve and other central banks to support the markets. But while all around the markets were losing their heads, Hong Kong's brave and appropriately named Hang Seng (it means 'ever growing') remained cool and even managed to attain an all-time high at the end of August. Its signal therefore remains on "hold".

Investors piled out of equities and turned to government securities and gilts and it isn't that surprising to note that our UK all-stocks gilts indicator turned in a buy signal - the last "buy" signal occurred exactly three years ago.

IC/Coppock Indicators:

MarketMarket index *August †July †June †Latest  signal
UK Govt. Secs              145.62 -25.8-26.0-24.2BUY
FT 30            2,843.19 +100.7+109.3+110.9WAIT
FTSE 100           6,179.08 +54.2+60.1+58.4SELL
FTSE All-Share           3,193.76+65.2+71.4+69.8SELL
FT Gold Mines           2,253.64 -13.4-0.5+8.2WAIT
Amsterdam              790.97+108.2+112.0+102.3SELL
ASX All Ord           6,022.60 +124.6+124.9+117.4SELL
S&P/ASX 200 Energy         13,350.65 +60.5+60.9+54.5SELL
Belgium S.E.         34,227.01 +121.9+134.1+132.3SELL
Dax (Germany)           7,463.64 +162.8+159.1+142.0HOLD
Dow Jones         13,239.71+97.9+96.5+87.5HOLD
Rep of Ireland (ISEQ)           8,400.98+116.5+133.1+136.6WAIT
France CAC 40           5,534.74+89.0+97.0+91.7SELL
Hang Seng         22,320.68 +166.5+164.8+152.1HOLD
Italy BCI           1,926.83 +83.7+992.5+90.7SELL
S. Africa Gold           2,292.70 -37.4-8.6+21.8WAIT
S. Africa Industrial         28,184.21+242.6+242.9+225.9SELL
Straits Times           3,339.83 +207.8+203.9+182.3HOLD
Tokyo New S.E.           1,606.09+32.2+38.7+32.1SELL
Toronto Comp         13,417.83 +84.0+87.1+78.7SELL
Toronto Gold           2,115.88+11.1+33.8+50.6WAIT
Sweden OMX           1,197.05+145.2+144.5+130.50HOLD
FTSE techMARK 100           1,647.14 +104.3+95.0+76.6HOLD
Nasdaq 100           1,931.27 +97.9+83.9+459.9HOLD

* Average index for the month of August 2007

† IC/Coppock Indicator

†† Unofficial signal

BUY/SELL = self explanatory; WAIT = you sold at the last sell signal and are now waiting for the next buy signal; HOLD = you bought at the last buy signal and are now awaiting the next sell signal.