⇑⇑ Strong Buy
As of Friday, November 30, 2018 EquitySurge™ has continued a STRONG BUY signal for stocks.
This week stocks stormed higher after closing on a down note after the Thanksgiving holiday.
Last week we talked about the very bullish liquidity backdrop developing for higher stock prices, with the idea that buyers were ready to buy, but not buying yet. Well this week we saw the buyers come in and come in in a big way indeed!
The Federal Reserve signalled on Wednesday a policy shift by indicating that it may be very near the neutral level on interest rates, meaning that perhaps the number of future interest rate increases by the monetary policy setting group may be limited. This policy shift statement ignited a massive rally in stocks on Wednesday that continued right into the close on Friday.
Looking at the RRG graphs, we see rotation in the Leading quadrant with green tails on the Daily, while on the Weekly three of the four indicators have now moved into the Leading with strong momentum readings. This continues to tell us that liquidity is returning to the stock market, which is bullish for higher stock prices in the near future.
RRG® Graph Commentary:
The indicators in the DAILY RRG® graph are rotating in the Leading quadrant with green tails, which is still bullish for stock prices. The WEEKLY RRG® graph now has three of the four indicators pushing solidly into the Leading quadrant and maintaining strong momentum, continuing the bullish liquidity backdrop for higher stock prices.
Current DAILY RRG Graph:
Current WEEKLY RRG Graph:
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