Thursday, September 21, 2017

As of Thursday, September 21, 2017 at the close of trading EquitySurge™ has continued a strong sell signal for USA equities.

Stocks have maintained their sideways action this week, which included news from the Federal Reserve that it will begin selling principal amounts of its bond portfolio beginning next month at the starting rate of $10 billion per month.

This continues to be an unprecedented period of low (none) volatility and super tight daily trading ranges on the S&P500 Index.

As we did earlier in the week, here are a few more macro charts to consider within the context of the bigger picture.

Since the Financial Crisis corporate stock buybacks have increased along with the S&P500 Index. Now that relationship seems to be diverging.

From Eric Pomboy of Meridian Macro Research:

SPX buy backs - Eric Pomboy - Meridian Macro 09202017

Here’s an intriguing look at the relationship between the US Federal budget balance peaking and the start of recessions.

Tweet from Rob Price – Priceless Economics:

Federal Budget Balance Peak Followed by Recession - Rob Price 09202017

In these continued days of eerie calm, don’t forget to keep a weather eye on the horizon…

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.

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