Thursday, February 27, 2020

⇑⇑ Strong Buy

As of Thursday, February 27, 2020 EquitySurge™ has generated a STRONG BUY signal for stocks.

Update:

We have been away on a long sabbatical and have not published here since last May, 2019. Our apologies for being away for so long, however we are now back and happy to again be publishing stock market information that hopefully will help you manage your investments more productively.

The stock market has been in the throws of a massive, steep and deep correction this week following the blow-off top meteoric rise since the beginning of 2020.

Now after six straight days of dramatic selling related to fear around the global spread of the COVID-19 coronavirus and the potential economic fallout from the virus, it’s starting to look like a bottom in stock prices is beginning to take shape.

Today the SP500 Index plunged again and tagged its 200 Day Simple Moving Average and then nearly fell all the way to the 3000 level before bottoming-out just shy of that round number and turning sharply higher. However in the afternoon all of that buying got reversed and the market dropped to new lows below the 3000 level on the SP500.

This sure looks like panic selling, which almost always leads to a great buying opportunity soon thereafter, and that is certainly the message coming from the liquidity indicators and the RRG Graph.

Could the market keep selling off? Yes, but now is the time to start accumulating long positions again.

As with all corrections the question will be: does this end up looking like a “V” bottom or a “W” bottom over the coming days and perhaps weeks? Can’t say yet, but the RRG Graph is giving us a strong indication to begin accumulating long equity positions again. Don’t buy it all now, but it does seem prudent to start taking advantage of the more than 10 percent sale going on in the stock market right now.

We will publish updates as needed over the coming days as market-generated information tells us more about the ending of this correction.

RRG® Graph Commentary:

All of the indicators in the RRG® graph are soaring higher into the Leading quadrant, led by the VIX Index which is practically exploding into the upper right corner of the Leading quadrant. This is sending us the strong message to start accumulating long stock positions again as this steep, frightening correction appears to be nearing an end. Dips in stock prices should be seen as strong opportunities to buy.

Current RRG Graph:

02272020 Daily

 

Click here to see the latest EquitySurge Trading Signal Performance Chart.

The Relative Rotation Graphs are provided by StockCharts.com, Simply the Web’s Best Financial Charts.

The terms Relative Rotation Graph and RRG are registered trademarks of RRG Research.

Leave a Reply