As of Wednesday, January 18, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
The stock market rotated in a narrow range again today, with the S&P500 Index closing up 4 points at the 2272 level.
It has been since December 13, 2016 that the S&P500 Index has been trading basically flat, more than a month now of horizontal consolidation.
During that same time liquidity has been telling us to take profits on long equity positions and build cash. Liquidity continues to dry up and the likely result is going to be an imminent sell-off in stocks. Will the decline be a buying opportunity or will it herald something deeper like a larger correction or even bear market?
Right now we don’t know, but the message from liquidity to get out of longs keeps getting louder and louder. Remember the goal of equity investing is to buy low and sell high. The vast majority of investors do just the opposite: being too scared to buy low, they wait until an uptrend is already well underway and then buy high, hoping for higher. And conversely at highs most investors become greedy for more and keep holding onto long positions even as evidence mounts that a decline is coming.
If you utilized EquitySurge to buy low back in January and February of 2016, or even later in the year at higher price levels, you’ve now enjoyed a fabulous return, but now is the time to harvest those gains and sell high.
If you would like to review the EquitySurge™ trading signals generated so far in 2016 please see the Trading Signal Performance Chart page.