The vast majority of the global stock markets covered by the IC/Coppock Indicators came under pressure during April. As a result, eight market indices or market sectors produced sell signals.
Three of those markets - Belgium, Germany and Sweden - had only just given buy signals in March but their bull runs were short lived as they turned tail in April. European stock markets were marking time as a result of the uncertainties of which way the disillusioned, austerity-fatigued electors would cast their votes as France and Greece go to the polls, while Spain and the UK went into recession. Further afield on the other side of the pond the US recovery came to a halt due to disappointing March payrolls.
The other sell signals were for the emerging markets of India, Thailand and Turkey, also the FTSE All share sectors for food producers and pharmaceuticals. In order to produce a buy signal the FTSE 100 index will now need to generate an average index value for May of 5,824 – that's some 100 points behind its current value.
The two markets that stood out from the crowd were the South African Industrials which is up 14 per cent since its buy was given in January of this year and the Nasdaq 100 which rose 3 per cent in one month alone.
Summary table of IC/Coppock indicators – major markets worldwide:
For a list of the constituents of the FTSE All-Share sector indices click here
Summary table of IC/Coppock indicators – FTSE All-Share Sectors:
Summary table of IC/Coppock indicators – Emerging & other markets worldwide
ABOUT THE IC/COPPOCK INDICATOR
The IC/Coppock indicator identifies long-term buying opportunities. It is based on a mechanical system known as the 'long-term buying guide', which was devised by Edwin Coppock of Texas. This buying guide was then revised by Investors Chronicle in 1963 – so it differs from the original system.
Mr Coppock only used his indicator as a buying guide, but we also show the sell signals in our table (above), just for interest. However, caution must be exercised when viewing these sell signals because they do not always indicate the start of a bear market. Sell signals do indicate a downward movement in the particular index, but this may well be a mere dip in a continuing bull market.
In the table, you will see the latest indicator, followed by the figures for the previous two months. These indicators can rise and fall, and be positive or negative figures. So when an indicator is in its negative phase, and then begins to rise after a falling trend, this is a buy signal [eg, -5.1 (Jan), -28.3 (Dec), -27 (Nov)]. When the indicator is in a positive rising phase, and begins to fall, this is a sell signal [eg, +120.9 (Jan), +132.5 (Dec), +128 (Nov)].
Unofficial buy signals occur when the indicator begins to rise, but is not in the negative phase. These may give investors an extra opportunity to purchase shares. Conversely, unofficial sells are given when the indicator begins to fall while in the negative phase.