As of Wednesday, July 6, 2016 at the close of trading EquitySurge™ has continued a strong buy signal for USA equities.
Liquidity (money flow) came into the stock market in a big way today after a lower opening. Prices rose close to 26 points on the S&P500 Index from the morning lows, to close right at 2100 again.
Every dip in prices is being met with significant buying, a very bullish sign for higher highs and beyond. The question is when. With global bonds yields at historic lows, and stock prices hovering just below all-time-highs (and being bought every time there is a dip), something has to give.
Fear is rampant everywhere, and the financial press is talking endlessly about why stocks can’t go any higher and are in fact due for another massive drop or even full-on bear market.
We are seeing unequivocal signs from the liquidity indicators that stocks are headed significantly higher in price, but most investors only see the opposite.
This is the perfect scenario for stocks to “climb a wall of worry” higher and higher in price.
Strong liquidity in our experience has never been a reason to do anything other than own stocks, and even if the stock market continues to bounce above, below and around the 2100 level for some time longer, liquidity is telling us that prices are eventually going to break out to new highs.
So any price dips are excellent opportunities to buy or add to existing long equity positions.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.