As of Friday, October 14, 2016 at the close of trading EquitySurge™ has continued a strong buy signal for USA equities.
The market held Thursday’s gains in place on Friday with the S&P500 Index closing unchanged at the 2133 level.
The most important news of the day however is that liquidity, which measures the amount of money flow into the stock market, set a new high level for 2016. This bodes extremely well for new all-time-highs in stocks in the coming weeks. When will this occur? Hard to tell, but the message here is that stock price weakness, pullbacks, and these mini-corrections we have been experiencing are all great buying opportunities for an eventual breakout higher in stock prices.
The telegraph from liquidity last year at this time was to get out of stocks and run to long-term treasury bonds or cash. The communication from liquidity right now could not be more of an opposite: load-up on stocks, a major more higher is coming.
As we continue this difficult and frustrating consolidation phase in stocks, with the accompanying downtrends and sell-offs, it is important to remain patient and keep heeding the message coming from the liquidity indicators to maintain long equity positions and use sell-offs as an excellent opportunity to buy or add.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.