As of Friday, September 9, 2016 at the close of trading EquitySurge™ has generated a strong buy signal for USA equities.
The stock market experienced an intense sell-off on Friday, beginning with the early morning futures session and continuing the entire rest of the day. Treasury bond yields rose sharply higher during the trading session across the maturity spectrum from 2 year to 30 year. These dramatic moves seem to have been sparked by various Federal Reserve members making the strong case for raising rates this year.
Last year around this time we had another powerful sell-off in the stock market, and liquidity measures back then had been telling us to stay away from the stock market. This time however liquidity measures are SCREAMING that this drop is not only a buy, but a STRONG buy for stocks, the polar opposite of last year.
It is difficult to tell exactly when or where the bottom will be for this correction, but after a 50+ point drop in the S&P500 Index on Friday and considering the extremely bullish indication that liquidity is giving us, this sell-off represents one of those rare strong buying opportunities that come around only so often.
We will be looking to add to existing long equity positions next week as this correction plays out. Remember, the object of stock investing is to buy low and sell high. Liquidity (money flowing into the stock market) is our omniscient indicator for whether to be in or out of the stock market, and right now it is unequivocally telling us to buy this dip!
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.