As of Friday, August 26, 2016 at the close of trading EquitySurge™ has continued a buy signal for USA equities.
Friday finally saw a return of some volatility and larger trading range in the stock market, after weeks on end of low volume, narrow-range consolidation. There were several Federal Reserve talks from the annual symposium at Jackson Hole, including a much-anticipated presentation by Federal Reserve Chairperson, Janet Yellen. It seems the Fed is getting more resolute about a modest increase in interest rates, and the market appears to be embracing this.
While stock prices could be entering a period of increasing volatility and wider trading ranges as the concept of another interest rate increase moves towards actually happening, the liquidity indicators are very clearly bullish for higher stock prices, and continue climbing.
With this extraordinarily bullish liquidity backdrop, buying any price weakness in the stock market should be seen as an excellent opportunity 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.