⇓ Short-Term | Long-Term ⇔
As of Thursday, July 19, 2018 EquitySurge™ has issued a SELL signal for short-term trading styles and a HOLD signal for long-term trading styles. See today’s Blog Post for updates.
⇓ Short-Term SELL
Long-Term ⇔ HOLD
We use RRG® graphs to show the relative strength and momentum of a group of liquidity benchmarks versus broad-based USA stock indexes. When the liquidity benchmarks show strong relative strength and momentum they appear in the green Leading quadrant. This means liquidity conditions are favorable for establishing and holding long equity positions. As the relative momentum of the liquidity benchmarks fades, they start moving into the yellow Weakening quadrant. If relative strength also then fades, they move into the red Lagging quadrant, which means that liquidity conditions are now unfavorable for holding long equity positions, and stocks should be sold or even shorted. Finally, when momentum starts to pick up again, meaning liquidity conditions are improving, they shift back into the blue Improving quadrant.
The liquidity benchmarks we use are the Hang Seng Index in Hong Kong, an excellent benchmark for global liquidity conditions, HYG, a high yield bond ETF, and TLT, a 20+ Year US Treasury Bond ETF. Each of these provides excellent insight into current liquidity conditions in the stock market.
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.