Time to buy US stocks, says Coppock indicator
The Coppock indicator was developed in the 1960s to spot long-term buying opportunities. And for the first time in six years, it says buy US stocks.
"A widely watched indicator that has worked 16 out of 17 times in the postwar era has sent a buy signal," says David Wilson on Bloomberg.com. The Coppock indicator was developed by economist Edwin Coppock in the 1960s when the Episcopalian church asked him to develop a tool to spot long-term buying opportunities.
The indicator is based on the difference between an index's value at the end of a month and an average of its closes 11 and 14 months earlier. He had been told that mourning periods last 11-14 months and thought the shock of a bear phase was comparable to bereavement.
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