Market BUY & SELL Signals

Here, members can access a number of technical indicators that can assist them to better time their entry into and exit from markets.

• Coppock Indicator
• 30-week Moving Average Indicator 
• 30 & 50-week Moving Average Indicator 

Consistent with ILTB’s investment philosophy, we have tested each of these indicators on many markets back in time to examine their effectiveness at calling turns in markets. We have satisfied ourselves that each has a decent track record in that regard. That said, none of the indicators is infallible and investors need to fully understand the odds of success that each indicator has had over time. The ILTB web site delivers that data to subscribers.

Coppock Indicator
The chart opposite is an example of the 'Coppock Indictor' - on the US S&P 500 Index. A 'Buy' signal is given by this indicator when it has gone below zero and then turns upwards. As the chart highlights, the Coppock Indicator gave a 'BUY' signal on the key US market in May 2009, at a time when sentiment was still universally bearish. Eight of the last nine Coppock 'Buy' signals which were given on the US market over the past forty years proved correct, an impressive batting average. The Coppock Indicator gives 'Buy' signals only. It is not designed to give 'Sell' signals.

The 30 & 50-Week Moving Average Indicator
The 30 & 50-week moving average indicator also serves to highlight changes to the medium term trend in a particular market in an unemotional way. In addition, the long term track record of this indicator is good with two out of every three signals proving to have been correct over the long term. The chart below shows the 'Sell' signal in early 2008 on the US S&P 500 Index and the recent 'Buy' signal in early Sept. 2009. That said, this particular indicator is slower to turn and can (and did) miss a significant part of the recovery in markets since March 2009. But for those investors that paid attention to the indicator in January 2008, the signal kept you out of one of the worst market declines in decades.

 A 'Buy' signal on this indicator is given when the 30-week moving average (red line) rises up through the 50-week moving average (green line) as occured in August 2003 and again recently in September 2009. A 'Sell' signal is given when the 30-week moving average declines down through the 50-week moving average as occured in January 2008.

The InvestR centre's Services in This Area For Members
For members of The InvestR Centre web site, we provide a more comprehensive understanding of the above technical indicators along with a more in-depth explanation of when and to whom these indicators are best suited. Members also have access to the underlying spreadsheets incorporating the charts and returns records of these indicators. In addition, we teach them at our 1-day investment seminars and comment on them in our weekly investment bulletin.

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