As of Monday, December 5, 2016 at the close of trading EquitySurge™ has continued a sell signal for USA equities.
Stocks were up today, with the S&P500 Index gaining almost 13 points to close at the 2205 level. This after Italian voters rejected a constitutional reform referendum proposal on Sunday, the defeat of which lead to the resignation of the Italian Prime Minister today.
Liquidity spent another day trending sideways but at a level which is still strongly signalling us to keep exiting long equity positions. This retrace back up in stocks is an ideal opportunity to sell long stock positions and keep building up cash.
We are entering a typically bullish time period that coincides with the upcoming holidays of Christmas and New Years, so it is certainly possible that stocks continue to churn sideways up near the recent all-time-highs, but we are not taking any chances and will keep liquidating longs at these price levels.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.