As of Tuesday, June 28, 2016 at the close of trading EquitySurge™ has generated a strong buy signal for USA equities. SPECIAL NOTE: The stock market staged a major gap-up and reversal higher at the open today, with liquidity indicators strongly supporting higher stock prices. It is very possible that the market has overreacted to the “Brexit” vote, and a snap-back rally with a “V-Bottom” off yesterday’s lows is now in progress.
The object of stock market investing is to buy low and sell high. Last week’s “Brexit” referendum vote in the United Kingdom to leave the European Union has caused a shock sell-off in world equity markets. These kinds of unexpected events are called “Black Swan Events” and can include things like major natural disasters, unexpected economic shocks, etc. World equity markets were not expecting the “Brexit” vote, so the reaction has been a swift, sharp and deep sell-off in stock prices. Now that cooler heads prevail along with the realization that it may be years if ever that Great Britain actually leaves the European Union, the exact opposite of the shock sell-off in equity markets could occur, which is a major retrace rally back up to the price levels right before the vote. The net effect of all this is that a major buy low opportunity may have been created with the “Brexit” vote reaction sell-off.
For those who are more risk-averse and already have long equity positions, you may want to just sit tight and hold your longs as this retrace rally plays out. But for those who want to add to existing long positions, now is an excellent time to do so and take advantage of the “Brexit” vote sell-off to buy low.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.