As of Friday, August 11, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.
This week the market showed some vulnerability and significant volatility.
We have been very early in our skepticism of the rally from the election last November, and we’ve had to endure what turned out to be a strong run up in stocks since then. However unless you sell your long equity positions and lock in your gains before a major sell-off, then the gains are just numbers on a page, especially if the market declines significantly off those highs.
Here are some charts to get you thinking about just what may be at stake:
Hong Kong Hang Seng
High Yield Bonds – USA
Long Term US Treasuries – TLT
Russell 2000 Small Caps to S&P500 Index Ratio Chart
US Dollar to Japanese Yen Currency Cross
Sotheby’s to S&P500 Index Ratio Chart – One of the best early warning indicators!
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.