As of Tuesday, February 14, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
Ok, ok, ok, enough with the black roses you’ve sent us for Valentine’s Day! We get the message; our strong sell trading call generated on December 7, 2016, 96 points lower now on the S&P500 Index, has many of you a little angry with us. We get it!
However, investing is all about getting in near market lows and getting out near market tops. Yes, 96 points is a fair amount to miss on the upside, about 4.3% from where we said strong sell, but, risks of staying long have been rising fast for a long time!
Over the weekend we listed all of the major concerns with where this market finds itself right now; here’s a recap:
- Liquidity has been telling us to exit longs into the rally for 2 months now.
- There is a perfect storm setup for a “volatility event” that could spike volatility from current historically low levels and cause a massive drop in stock prices.
- Public company insiders have been selling into this rally at a furious pace.
- Volumes have been declining as prices have climbed. Not just recently, but over the past many weeks.
To sum up where we are right now, we quote our esteemed colleague, Tom McClellan, of The McClellan Market Report, “Complacency is rampant, and it must be punished.”
Yes, the stock market could continue rising, and if you still have longs then good for you, as you’ve added to your gains, but do not think for one minute that the market will give a hoot about you when whatever it is that’s going to happen, happens, and causes this market to drop like a granite boulder just pushed from a cliff.
If you would like to review the EquitySurge™ trading signals generated in 2016 and so far in 2017 please see the Trading Signal Performance Chart page.