Update of Extension of Post Coppock Curve Buy Signal Patterns

By: Gerald Hoopes | Wed, Oct 20, 2004
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Here's an update of the 5 charts shown in my May 21, 2004 communication:

First comes a scatter chart in which the CI-NCI Ratio smoothed by six 10-day moving averages is plotted against the NYSE Trin smoothed by six 10-day moving averages. The time span covers from 250 to 500 trading days after the 4/28/78 deep Monthly DJIA Coppock Curve buy signal and from 250 to 350 trading days after the 5/30/03 signal. This is actually an update of the 4th chart in my June 11, 2004 communication.

Second and third come line charts showing each of the above 2 coordinates separately over the 500 trading days before and after the same 2 signal dates.

Fourth comes the latest update of the Monthly DJIA line chart showing the 24 months before and after the same 2 signals.

Fifth comes a line chart of Peter Eliades' CI-NCI Ratio.

Regarding the possible pattern pair under consideration here (whether it be genuine or merely by coincidence) not much can be gleaned from the scatter chart this long after the relevant Coppock Curve buy signals. Turning to the line charts, notice that the current CI-NCI Ratio has "joined up" with the earlier case to the downside after having been above it for more than a year. Similarly, the Six by Ten CI-NCI Ratio is about to do the same. The Six by Ten Trin, meanwhile, continues to emulate the earlier case fairly well. With respect to the Monthly DJIA (which is where any pattern pair matters most), in my opinion the pattern pair under consideration cannot demonstrate its existence without the DJIA dropping into (or through) the 8,000 neighborhood before June of 2005.


 

Author: Gerald Hoopes

Gerald Hoopes

An explanation of the Coppock Curve can be found at How to Calculate the Coppock Curve. An archive of Geralds comments can be found in the forums at www.longwaves.net.

This analysis is for academic purposes only and must not be construed as investment or trading advice.

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