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Coppock calls the top

Coppock swings to sell in March as markets hit new highs
April 9, 2015

March’s Coppock signals were largely in the ‘debit’ column, with a flurry of major market sells and signs that the precious metal mini-revival has run its course.

So should we pay attention to the sell signals on the FTSE 100 and All Share? As regular Coppock watchers will know, the system has not always been so effective when it comes to selling. Until last month it had been saying ‘sell’ on the top of the UK’s two main indices since December 2013 – along with sells on all US markets which have long been making record highs.

It also said sell on India's Sensex around the same time – although that was cancelled in short order, marking the beginning of a powerful uptrend that has only now started to lose steam.

Nevertheless, even if you don’t slavishly follow Coppock indicators, they do offer a timely reminder to reassess positions in runaway markets – a PE ratio of 20 and a yield of 1.35 per cent hardly suggests the Sensex is cheap. And precious metal sells - and general weakness this year - make sense if one believes US interest rate rises are indeed on the way.

March’s Coppock signals

BuysSells
NoneNew Zealand NZX 50 Index
 India S&P BSE Sensex Index
 UK FTSE 100 Index
 UK FTSE All Share Index
Cancelled sellsCancelled buys
Switzerland Swiss Market IndexGold bullion
Korea Composite Stock Price IndexS&P GSCI Precious Metals TR Index