As of Tuesday, November 15, 2016 at the close of trading EquitySurge™ has continued a hold signal for USA equities.
The S&P500 Index rose today to very near the all-time-highs set back in the Summer. Unfortunately these higher prices are occurring as liquidity is now telling us to be very cautious about holding long stock positions.
After reaching new high levels for 2016 back in late October, liquidity has declined steeply, significantly, and quickly since then, and is now warning us about being long stocks. If this continues we will have to sell long positions and go to cash.
At this point liquidity is only sending a warning signal, not a sell signal, but we are watching closely. And while we are maintaining a hold signal for equities for now, as we get closer to and perhaps above the prior equity price highs it may be prudent to scale back long equity positions into that price strength.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.