June was eventful on the Coppock front, delivering a barrage of sells across the major European markets we track. That won't come as much surprise to those of you who believe the apparent recovery in the eurozone could prove illusory and that after a good run European equities could come a cropper as a result.
Yet it does fly in the face of the idea that the ECB's hints at further loosening of monetary policy will send the continents markets ever higher. Coppock history shows the powerful effects of central bank largesse, not least Mario Draghi's "do whatever it takes" speech in July 2012 which was swiftly followed by a raft of Coppock buys on no fewer than 10 European markets - 13 if we include the three UK major indices we track, and another four if we include those markets that had already given buy signals in anticipation of huge hints at massive intervention. Yet the ECB's latest moves - the stick of negative interest rates and the carrot of full-blown quantitative easing (QE) further down the road - have clearly not had such a pronounced effect. Why are many would-be investors still so wary of investing in its markets.?
