As of Tuesday, December 6, 2016 at the close of trading EquitySurge™ has continued a sell signal for USA equities.
Stocks were higher today, with the S&P500 Index closing at the 2212 level, just below the recent all-time-high.
Liquidity however continues in a sideways holding pattern, signalling that this rally in stocks may be reaching a top.
While it is easy to get caught up in the excitement and euphoria of a stunning rally like what we’ve had since the presidential election, in order to be a successful long term investor you must remain disciplined at all times and ignore the urge to stop listening to what otherwise are very reliable signals even when they may be saying something that you don’t necessarily want to hear.
Such is probably the case right now in the stock market as prices keep making new highs in various indexes and the “Trump Rally” seems unstoppable. This is what’s on the surface and most certainly in the news. However underneath the “New All-Time-High” headlines we have our stalwart indicator of liquidity telling us that all is not right and calling into question this rally.
We are going to keep maintaining our discipline and listen to our guiding light indicator of liquidity and continue off-loading long equity positions at these prices.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.