As of Friday, October 21, 2016 at the close of trading EquitySurge™ has continued a strong buy signal for USA equities.
The stock market continues to drift around in a tight, consolidating range, which has been the state of affairs since the middle of July!
As the date of the USA election draws near, and we get closer to another potential interest rate hike, the market may finally be ready to break loose from this many-months-long narrow trading range. Which direction for the break? Liquidity is telling us in a very strong message that the stock market will break out higher, and likely in a big way.
As of Friday’s close, liquidity indicators have again set a new high mark for 2016. This has happened repeatedly over the past several weeks, and is a significant sign that there is a large scale flow of money into equities, which at any time could manifest into a significant rally higher in stock prices.
While our patience with this very long consolidation period has been more than stretched, the message liquidity is telling us is that the coming rally higher in stock prices will be more than worth the wait.
In the meantime, any price weakness in stocks is an excellent opportunity to continue buying or adding 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.