Friday, August 5, 2016

As of Friday, August 5, 2016 at the close of trading EquitySurge™ has continued a hold signal for USA equities. This signal means to hold existing long stock market positions, but do not buy additional positions.

The stock market reacted very strongly to the upside on the USA Employment Situation Report release early Friday morning which revealed another much higher than expected increase in employment in the labor market.

It seems our alternative scenario of the market making additional new all time highs before a pullback/correction occurs is now playing out. At this point the market will most likely head to the 2200 level and possibly higher on the S&P500 Index before there is a better chance of price weakness entering into the picture again.

While liquidity indicators have certainly turned up sharply after declining earlier this week, they have not regained the recent high levels, so for this reason we would not chase stock prices higher here, but rather would maintain existing long positions while we wait for more information from the market about its next intentions.

So for now we would just continue holding 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.

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