• 681 days Will The ECB Continue To Hike Rates?
  • 681 days Forbes: Aramco Remains Largest Company In The Middle East
  • 683 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,082 days Could Crypto Overtake Traditional Investment?
  • 1,087 days Americans Still Quitting Jobs At Record Pace
  • 1,089 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,092 days Is The Dollar Too Strong?
  • 1,093 days Big Tech Disappoints Investors on Earnings Calls
  • 1,093 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,095 days China Is Quietly Trying To Distance Itself From Russia
  • 1,095 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,099 days Crypto Investors Won Big In 2021
  • 1,100 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,100 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,103 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,103 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,106 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,107 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,107 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,109 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…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

Coppock Curve Buy Signals in Phase Space

As shown in my June 6 communication, the 8 deep and very deep Monthly DJIA Coppock Curve buy signals which occurred between 12/1/61 and 5/30/03 comprise 4 pairs with respect to trading day time path patterns generated by plotting the Six by Ten CI-NCI Ratio against the inverted Six by Ten TRIN.

Another way of depicting those 8 time paths is to reconstruct a phase space by dividing the Six by Ten CI-NCI Ratio by 1.0 plus three 17-day moving averages of the 4-day TRIN minus the 11-day TRIN; and (to scale the vertical axis) taking the natural logarithm of the inverted Six by Ten TRIN. The result is a phase space called "Cycloops," whose overall time path consists of many counterclockwise loops from 12/1/61 to 5/30/03.

Highlighting in pairs the identical 8 time spans as in my June 6 communication (while hiding the overall time path) reveals 4 distinct patterns once again.

Cycloops phase space allows these same 8 Coppock Curve buy signal time paths to be portrayed (only one pair at a time to avoid confusion) alongside those of 6 somewhat complementary sell signals, whose time paths (unlike those of Coppock Curve buy signals) are identified via a superimposed geometric visual aid.

For example:

These 6 Cycloops sell signals were all big winners (false positive sell signals having been filtered out by design retrospectively in February 2000).

To better scale the vertical axis, this DJIA chart does not show the 1/28/00 sell signal.

Notice the false negative sell signals at the DJIA tops of 1966, 1969, 1976, and 1983.

Back to homepage

Leave a comment

Leave a comment