• 254 days Will The ECB Continue To Hike Rates?
  • 255 days Forbes: Aramco Remains Largest Company In The Middle East
  • 256 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 656 days Could Crypto Overtake Traditional Investment?
  • 661 days Americans Still Quitting Jobs At Record Pace
  • 663 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 666 days Is The Dollar Too Strong?
  • 666 days Big Tech Disappoints Investors on Earnings Calls
  • 667 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 669 days China Is Quietly Trying To Distance Itself From Russia
  • 669 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 673 days Crypto Investors Won Big In 2021
  • 673 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 674 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 676 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 677 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 680 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 681 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 681 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 683 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

The Coppock Curve Buy Signals of 4/28/78 and 5/30/03

A previous communication showed that the two deep Monthly DJIA Coppock Curve buy signals of 4/28/78 and 5/30/03 were the only ones since the 1920's not to be preceded within 600 trading days by at least one instance of the smoothed CI-NCI Ratio dipping to 0.9500.

Are these two signals uniquely akin in any other respect? Consider the time path generated on a scatter chart by plotting the smoothed CI-NCI Ratio against the inverted and smoothed NYSE TRIN, from 12/1/61 to 5/30/03, with both smoothings accomplished by applying six 10-day moving averages. At first glance that time path appears unintelligible.

Of the 8 deep and very deep Monthly DJIA Coppock Curve buy signals since 12/1/61, 5 deep ones (1/31/63, 4/28/67, 8/31/70, 9/30/82, and 10/31/88) were preceded by one dip in the smoothed CI-NCI Ratio to 0.9500 within 600 trading days of the signal; and 1 very deep one (1/31/75) was preceded by 2 such dips. Of interest in these 6 cases are those trading days from the date the smoothed CI-NCI Ratio (last) reached 0.9500 (to the downside) to the date of the signal itself. Highlighting those 6 time spans 2 at a time on the chart reveals 3 distinct patterns.



We know the two remaining signals (4/28/78 and 5/30/03) were not preceded within 600 trading days by any dips in the smoothed CI-NCI Ratio to 0.9500. Of interest in each of these 2 cases are the 600 trading days comprising the time window in which 1 or more dips might have taken place but did not. Highlighting both of those time spans together on the chart reveals a 4th pattern. Thus, as to pattern too, 5/30/03 is uniquely akin to 4/28/78.

Incidentally, most of the 7 signals shown in the DJIA chart below were big winners. The 4/28/78 signal, however, was not.

Back to homepage

Leave a comment

Leave a comment