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VLT

Sep 14 2018

Another Eulogy For The Bond Bull

  • Sep 14, 2018

In the past year, big-name bond gurus have put forth various yield targets that, if exceeded, would provide definitive proof that the secular bull market in Treasury bonds begun in 1981 had finally ended.

Sep 08 2018

VLT Turns Up Again??

  • Sep 8, 2018

A “moderate-risk” S&P 500 VLT BUY signal was triggered at the end of August, but it’s not all good news. Any upturn in the VLT while the indicator is in positive territory also sets up a pattern known to veteran market analysts as the “Killer Wave.”

May 05 2018

A “Busted” Bond BUY Signal

  • May 5, 2018

Last October our VLT algorithm recorded a bond BUY signal—one that we said, at the time, conflicted with our outlook.

Feb 07 2018

What Yield “Kills” The Secular Bond Bull?

  • Feb 7, 2018

Bond market strategists remain hell bent on identifying the key yield level on 10-year Treasuries at which one can finally declare an end to the 1981-20XX secular bond bull market.

Nov 07 2017

A Mysterious Bond BUY Signal…

  • Nov 7, 2017

Sometimes we feel compelled to report findings that conflict with our outlook. And then there are the even rarer times we actually do it.

Aug 05 2017

VLT Goes “Quiet”

  • Aug 5, 2017

Last year’s “low-risk” BUY signals from our Very Long Term (VLT) Momentum algorithm have proven very profitable, but enough time has elapsed that they should no longer be considered an important bullish factor.

Apr 07 2017

What’s Ailing Small Caps?

  • Apr 7, 2017

While the Russell 2000 loss during the 2015-16 correction was almost double that of the S&P 500, the decline did not fully erase the P/E premium Small Caps have enjoyed since the middle of last decade. The premium might need to be entirely erased before a multi-year Small Cap leadership cycle can begin.

Nov 05 2016

Not Much “Lift” From VLT “BUY”

  • Nov 5, 2016

In the June Green Book, we professed some skepticism surrounding the long-term, “low-risk” BUY signal for stocks that was triggered at the end of May by our Very Long Term (VLT) Momentum algorithm (also known as the Coppock Curve).

Aug 05 2016

More Upside For Small Caps?

  • Aug 5, 2016

There was a major cyclical BUY signal (VLT Momentum) for the S&P 500 in late-May, and as of July’s close, that bullish development was reinforced by a new VLT BUY signal on the Russell 2000.

Jun 07 2016

VLT Says “BUY”

  • Jun 7, 2016

Breadth underlying the 4-month upswing has been stronger than that observed during any other rally leg since 2013. Despite just a 14% correction in the S&P 500 from its peak, a new VLT “BUY” signal was triggered. Failed signals are relatively rare, the last one occurred in December 2001.

Mar 08 2016

Implications Of Oversold VLT Momentum

  • Mar 8, 2016

The S&P 500 decline has yet to come close to a bear threshold, but it’s nonetheless been sufficient to drive the Very Long Term (VLT) Momentum algorithm into oversold territory for the first time since late 2009. In 16 of 21 prior cases, VLT Momentum’s initial oversold reading was a harbinger of a market that was soon to become even more oversold.

Feb 05 2016

Learning From Failures?

  • Feb 5, 2016

There’s an old trader’s adage which holds that “the most powerful sell signal is a failed buy signal.” Last fall we noted that European equities and Small Cap Value had triggered BUY signals on our Very Long Term (VLT) Momentum algorithm.

Dec 08 2015

BUY Signals In A Topping Market?

  • Dec 8, 2015

Here’s an example of just how disparate underlying market action has become: with the S&P 500 only 2% away from a cycle high, several major U.S. and foreign market indexes have already moved into an oversold position on the basis of our Very Long Term (VLT) algorithm—with a few (including EAFE, Chart 1) actually triggering “long-term, low-risk” BUY signals in the last two months! We are not sure what to make of this action.

Dec 08 2015

TIME: The Hidden Market Risk?

  • Dec 8, 2015

Is there a statistical relationship between the height scaled by a given bull market and its subsequent decline? That correlation is in fact pretty tenuous, we’ve found.

Nov 06 2015

VLT Flashes A BUY On Oil

  • Nov 6, 2015

As expected, our VLT Momentum algorithm triggered a “low-risk” cyclical buy signal on crude oil in late October, only the 11th buy signal in the past 30 years. This algorithm was originally designed to identify low-risk entry points into the stock market, but we’ve found it useful with other assets as well.

Sep 09 2015

A Lasting Low In Crude?

  • Sep 9, 2015

In our naïve way of measuring market moves, WTI crude oil is about 15% from its $53.27 December 31st closing price. But thanks to financial television, we’re beginning to wise up.

Jul 08 2015

Oil Prices And VLT

  • Jul 8, 2015

Energy groups continue to rate poorly in our quantitative work, but change will probably be afoot in the second half.

Feb 06 2015

A Few Thoughts (And A Lot Of Charts) On The Oil Collapse

  • Feb 6, 2015

Has the recent collapse in crude oil prices presented us with a good opportunity for an outright commodity investment? No. Energy stocks aren’t on our radar screen either.

Jun 06 2014

“Overbought” Can Be Good Or Bad

  • Jun 6, 2014

The notion of “overbought” and “oversold” markets might be the costliest concepts ever developed by stock market technicians. The very words imply some sort of excessive condition that’s prone to naturally self-correct.

Apr 08 2014

A Milestone You Might Have Missed

  • Apr 8, 2014

The fifth anniversary of the bull market was met with fanfare, but the launch of the Large Cap leadership cycle in April 2011 is receiving no attention whatsoever.

Jan 08 2014

Group Scores Worked Well In 2013, What We Like For 2014

  • Jan 8, 2014

All five factor categories did well, and the best performing Attractive industries came from six different sectors and ranged from traditionally defensive to more cyclical groups.

Jun 07 2013

Timing The “Taper”

  • Jun 7, 2013

The new debate over the QE “taper” erupted at the same time that a long-reliable Fed-tracking tool is telling us it’s time to ease.

Apr 05 2013

Q1 Review of Group Selection (GS) Scores

  • Apr 5, 2013

After a recent rough patch due to a multitude of factors (macro driven markets, high correlations, etc.), our domestic Group Selection (GS) Scores started seeing more consistent performance during the fall of 2012. This continued through the first quarter of this year, with the Attractive to Unattractive return spread at +3.0% year-to-date.

Feb 06 2013

New Highs, And Then What?

  • Feb 6, 2013

We are in clear view of the “Twin Peaks” S&P 500 highs of the last decade and these should be eclipsed by mid-year. But when the S&P 500 is adjusted for inflation or denominated in Swiss Francs or Gold these highs may prove elusive.

 

 

Aug 07 2012

An “Oversold” Market Turns Up

  • Aug 7, 2012

VLT Momentum fired long-term BUY signals at the end of July on the Russell 2000, MSCI World Index and EAFE - and more signals could be coming…

 

May 04 2012

VLT And Foreign Markets

  • May 4, 2012

Exploring VLT (Very Long Term) Momentum readings in foreign markets versus the S&P 500.

 

Apr 05 2011

Bull Market Extension?

  • Apr 5, 2011

VLT has turned up for most market indices. Even though it is still above the zero line, history shows that this signals an extension of the bull market.

 

Jun 03 2009

All In

  • Jun 3, 2009

VLT Momentum measures shifted to buy signals based on May 29th market close. These are low risk signals, which by definition are confirmation of longer term sustainable bull market moves.

Jan 04 2009

Struck Down By The "Killer Wave"

  • Jan 4, 2009

Last January we noted the appearance of a rare and dangerous technical configuration in the Dow Jones Industrials Average. Some analysts have described this topping pattern as the “Killer Wave”, and did it ever live up to that nickname in 2008.

Sep 03 2008

Materials: From First To Worst

  • Sep 3, 2008

Materials sector has fallen fast and hard in our GS Score rankings and is now the worst rated. Still see further downside based on valuations and technical factors. No, we do not think the underlying commodities can outperform while the stocks fall.

 

Mar 05 2008

Client Question: VLT Buy Signals

  • Mar 5, 2008

“Given the broad declines in the stock market since October 2007, are there any particular industry groups which are beginning to look washed out enough to trigger a buy signal on the VLT work you employ in your Group Selection Scores?”

 

Jan 05 2008

Dow Double Trouble

  • Jan 5, 2008

Our VLT (Very Long Term) Momentum algorithm—alternatively known as the Coppock Curve or “Madness of Crowds”—has just rolled over after forming a rare “double top” formation. Why has the rare VLT Double Top typically proven lethal for the stock market? 

Dec 05 2007

VLT Momentum On U.S. Currency...Applications (And Implications) For The Weak Dollar

  • Dec 5, 2007

Quite simply, VLT (which stands for Very Long Term) is a momentum oscillator which works best as a buy signal. Some market technicians have also suggested that VLT Momentum back-tests well as a currency indicator.

Jun 04 2003

The VLT Momentum Indicators…..Third Buy Is A Charm

  • Jun 4, 2003

VLT Momentum registers another buy signal. Only in the 1930s has a similar pattern of buy signals developed. Third buy led to big gains back then.

Dec 04 2002

The VLT Momentum Indicators…..New Buy Signals On S&P 500 & DJIA

  • Dec 4, 2002

VLT Momentum, a long term technical measure, recorded buy signals on S&P 500 and DJIA. This is a very reliable indicator.

Apr 03 2002

De-Mystifying VLT Momentum

  • Apr 3, 2002

An explanation of VLT Momentum (The Coppock Curve); what it is and how we use it.

Jun 02 1999

VLT Momentum Buy Signals...Good News For Small Cap Fans

  • Jun 2, 1999

Maybe we are too cautious about calling a turn in relative small cap performance. VLT work on Russell 2000 and Value Line now both giving buy signals.

Jul 01 1990

VLT Momentum Update

  • Jul 1, 1990

Recently some clients have asked about the status of the Very Long Term Momentum Indicator. This stock market tool is the original creation of the late “Sedge” Coppock. While we have made some modifications in interpretation, it is essentially Coppock’s work.

Apr 01 1989

View from the North Country

  • Apr 1, 1989

Benchmarks Mailed to All Clients in Late March...Hall Of Famer “Sedge” Coppock...MTA Annual Seminar May 19-21, Naples, Florida...New Zealand Update...Precious Metals Update

Apr 01 1989

VLT Momentum: Based on DJIA Monthly Averages

  • Apr 1, 1989

In the fall of 1988, this publication detailed a very reliable long-term stock market indicator we call VLT momentum. Herein, we present the record tracking back to 1897, employing average monthly prices in the calculation rather than month end prices.