As of Friday, July 15, 2016 at the close of trading EquitySurge™ has generated a hold signal for USA equities. This signal means to hold existing long stock market positions, but do not buy additional positions.
After the stunning Brexit “V-bottom” turnaround and subsequent breakout surge to new all-time-highs, the stock market is showing signs of reaching a short-term top, from which it is going to need to consolidate and establish new support levels.
While the market can certainly climb higher in the short run, it is more likely that we start to see some volatility, dips, sell-offs, and trading ranges for a while to find out where support now resides.
As long as liquidity conditions stay at their current highly supportive levels for stocks, this is NOT a time to sell positions, even if we see some bigger sell-offs. Rather this will turn into a time to add to existing long equity positions because it is highly likely that after this consolidation period, the stock market will continue heading higher, and perhaps even much higher.
So for the time being existing long equity positions should be held, and once we see some tests of new support levels it will be time to buy again and continue adding to long positions. Stay tuned for that buy signal to be generated.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.