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Electricity surge causes a buy

Three IC/Coppock Indicators produced buy signals in October and one a sell
November 8, 2012

Two of our IC/Coppock Indicators for gold produced buy signals in October - they were for the Toronto Gold and the FTSE Gold Mines indices. These markets have responded well to positive data coming out of China which boosted the price of gold bullion along with commodity prices in general. Gold prices also received a lift from the third round of quantitative easing.

The third buy signal came from the FTSE All-Share Electricity sector index. That index is surging ahead and is currently on new highs - although it could be viewed as overpriced. Its dividend yield, however, is impressive and maybe the constituent companies will pass on some of their income received from putting up their electricity prices, to their shareholders.

The last signal came from the FTSE All-Share Food & Drug Retailers sector, which produced an unofficial sell. The chart for this sector is the antithesis to the electricity graph because it has been falling. That's not surprising given that Tesco, which has endured a rough time as of late, dominates that particular index.

Summary table of IC/Coppock indicators - major markets worldwide:

Index/marketOctober average indexOctober indicator*September indicator*August indicator*Signal†
UK Govt. Secs172.6+43.6+50.4+56.3WAIT
FT 30 2,083.1-0.8-20.2-44.7HOLD
FTSE 1005,831.8+12.6+3.3-10.9HOLD
FTSE All-Share3,046.3+13.8+2.9-12.3HOLD
FT Gold Mines3,213.2-107.5-113.4-109.5BUY
Amsterdam514.7+8.4-8.4-36.8HOLD
ASX All Ord4,514.7-16.9-31.7-47.1HOLD
S&P/ASX 200 Energy12,683.5-61.2-70.5-85.7HOLD
Belgium S.E.8,774.8+35.1+12.5-15.3HOLD
Dax (Germany)7,288.2+42.6+16.0-25.9HOLD
Dow Jones13,356.9+57.4+48.8+34.7HOLD
Rep of Ireland (ISEQ)3,259.0+96.2+82.0+57.1HOLD
France CAC 403,435.7-21.2-42.3-75.1HOLD
Hang Seng21,293.3-17.6-44.5-64.5HOLD
Italy BCI841.1-72.3-92.0-124.4HOLD
S. Africa Gold2,381.5-51.7-39.1-21.7WAIT
S. Africa Industrial3,4905.1+131.3+118.6+100.5HOLD
Straits Times3,055.0+8.4-8.8-26.0HOLD
Tokyo New S.E.736.2-35.0-43.2-53.0HOLD
Toronto Comp12,337.6-32.9-45.8-57.2HOLD
Toronto Gold2,842.5-112.6-117.8-112.1BUY
Sweden OMX1,068.5+19.2+3.1-23.8HOLD
FTSE techMARK 1002,415.8+64.9+50.9+35.9HOLD
Nasdaq 1002,735.9+97.1+91.6+76.3HOLD
*Average index for October 2012. †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.

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:

SectorOctober average indexOctober indicator*September indicator*August indicator*Signal†
Mining17,866.9-102.0-118.1-131.6HOLD
Oil & Gas8,126.9+5.9+5.6-3.1HOLD
Chemicals9,211.4+120.9+104.9+74.6HOLD
Constr & Bldg mats3,393.7-35.9-49.5-68.7HOLD
Forestry & paper7,709.6+36.1-1.8-23.5HOLD
Steel & other metals2,994.1-277.0-288.4-291.9HOLD
Aerospace & defence4,009.6+98.4+86.8+66.9HOLD
Diversified industrls2,661.5+50.7+24.2-3.7HOLD
Electronic & electr eqpt4,043.8+67.4+45.8+24.6HOLD
Eng'g & machinery7,816.7+44.1+32.6+20.5HOLD
Automobiles & parts5,015.1+17.4+1.9-23.0HOLD
H'hold goods textiles2,344.2-108.3-120.3-121.8HOLD
Beverages12,751.6+147.5+140.5+126.9HOLD
Food producers6,134.6+58.1+54.2+49.5HOLD
Health3,800.6+22.7+4.1-15.2HOLD
Personal care15,333.8-25.0-12.9+7.6WAIT
Pharmaceuticals9,621.5+31.2+38.0+39.3WAIT
Tobacco36,000.9+101.9+112.9+120.0WAIT
General retailers1,836.2+48.3+28.9+7.2HOLD
Leisure & hotels4,836.3+52.4+30.1+2.6HOLD
Media ent't4,676.3+55.4+39.4+16.7HOLD
Support services5,049.8+79.4+60.6+38.0HOLD
Transport3,164.8-6.6-26.9-47.0HOLD
Food & drug rtlrs4,111.4-66.4-65.6-75.6SELL
Telecommns svs2,655.5+82.2+66.6+39.7HOLD
Electricity8,909.6+26.1+24.6+25.1BUY
Other utilities7,009.0+61.0+57.0+49.8HOLD
Banks4,030.4-22.5-54.1-88.4HOLD
Insurance1,815.3+3.0-16.8-41.5HOLD
Life assurance4,806.1+54.4+30.2-3.1HOLD
Investment cos6,012.6-6.1-18.9-30.7HOLD
Other finance4,513.3-38.0-64.7-86.5HOLD
IT hardware1,021.1+26.1+13.8+6.9HOLD
Software & comp svs999.8+103.3+92.7+78.2HOLD
*Average index for October 2012. †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.

Summary table of IC/Coppock indicators – Emerging & other markets worldwide

Market/indexOctober avg indexOctober indicator*September indicator*August indicator*Signal†
Argentina8,393.4-89.5-104.3-120.0HOLD
FTSE Aim705.3-66.8-83.3-94.4HOLD
Brazil58,616.0-2.5-15.2-31.4HOLD
China2,295.3-95.1-102.3-105.2HOLD
Greece831.9-182.4-240.1-277.6HOLD
India5,697.7+0.6-21.8-37.9HOLD
Indonesia4,309.7+51.2+39.3+33.4HOLD
Israel1,075.3-24.3-43.2-62.8HOLD
Mexico12,930.5+37.2+16.5+1.5HOLD
Philippines5,401.9+127.9+116.0+108.0HOLD
Poland43,884.8-27.3-50.7-77.6HOLD
Portugal5,374.5-130.9-150.4-168.9HOLD
Russia16,527.0-76.4-89.8-100.5HOLD
South Korea1,942.2-9.0-20.1-35.7HOLD
Spain788.6-115.0-127.3-148.8HOLD
Switzerland6,661.7+44.4+27.5+4.0HOLD
Thailand1,298.4+102.9+74.6+57.9HOLD
Turkey69,365.4+34.0+9.3-16.5HOLD
Venezuela362,533.1+1,103.7+1,010.3+961.6HOLD
*Average index for October 2012. †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.

Read previous Coppock indicators here...